Last-Mile Delivery Warehouse Montreal: E-Commerce Floor Reality

The E-Commerce Warehouse Isn't a Retail Backroom

If you're shipping e-commerce inventory into Montreal for same-day or next-day last-mile delivery, you already know the pressure: carriers promise 24-hour fulfillment windows, customers expect tracking updates every six hours, and inventory accuracy is not optional. But the warehouse floor does not operate at retail speed. It operates at 3PL capacity limits.

An e-commerce shipment arriving at Port of Montreal at 08:00 on a Tuesday does not go into pick-pack at 09:00. It sits in drayage queue. Depending on terminal congestion and our dock-door availability, that container may not arrive at the warehouse until 14:00 or 16:00. Receiving takes 90 minutes for a 40HC (inspection, pallet count, SSCC barcode confirmation, putaway instruction). By 18:00, you're into the next-day putaway cycle. By 23:59, your SKUs are in racking and available for pick. Real same-day turnaround happens maybe 20% of the time, and only on early-morning arrivals with pre-arranged dock windows.

Most importers don't talk about this friction. They talk about their carrier SLA. We talk about ours: dock-to-stock at FENGYE LOGISTICS runs at 48 hours from release to pick-available. If your contract with your last-mile carrier says 24 hours, that gap is a problem on your P&L, not ours.

Drayage Windows Are Not Suggestions

Last-mile e-commerce in Montreal live in the tension between Port of Montreal drayage scheduling and warehouse receiving SLA. Here's how it actually works.

Port of Montreal offers scheduled drayage windows during operational hours. If you're shipping three 40HC containers per week into Montreal, your broker coordinates a release window with the terminal. Free-time detention starts the moment the container leaves the terminal gate. If your drayage driver is scheduled for a 10:00 am drop at the warehouse and misses it, the container sits in your drayage fee stack until the next available window, usually 48 hours later. That's anywhere from CAD 250 to 400 per day in detention, plus the importer pays it, not the warehouse.

E-commerce importers often chase same-day inventory availability and tell drayage to "grab any window." That creates scheduled conflicts with other freight on the dock. Our dock schedule runs on 90-minute cycles per door, three doors operational on inbound, 06:30 EDT start time, 18:00 close. On a heavy Tuesday, we're running 12 dock slots. If your drayage window doesn't match, you queue. Queue time looks like 2–4 hours depending on the day of week.

Q4 (August through November for retail import) changes the math entirely. Port of Montreal congestion pushes drayage windows backward by 8–12 days. That 48-hour dock-to-stock promise becomes impossible if your container isn't even at the gate yet. Talk to your freight forwarder about staggered arrival schedules in Q4. A container that sits at the terminal for 10 days waiting for drayage availability is not the warehouse's constraint.

Cross-Dock Cutoff Is Real Friction

Many e-commerce operations in Montreal run a hybrid model: some inventory goes straight to pick-pack, some goes cross-dock to last-mile carriers (same-day or next-day local delivery). The cross-dock cutoff is the wall where this breaks.

At FENGYE Warehouse, our cross-dock cutoff for next-day outbound runs at 14:00 EDT. Any inbound container that doesn't clear receiving and sort before 14:00 sits overnight. Overnight sitting happens at our in/out fee rate (typically CAD 12–18 per skid), not your last-mile carrier's promised speed. If your drayage drops at 13:45, you're eight minutes inside the window. If it drops at 14:15, you just spent CAD 12–18 extra per skid and now you're next-day anyway.

Importers hear "cross-dock" and think it means "immediate." Cross-dock actually means "direct sort, no racking, ship out the next available cycle." That cycle is 18–24 hours, not 2–4 hours. If you need actual same-day outbound, you need arrival before 10:00 am with pre-confirmed inbound appointment. That's maybe 3–4 times per week for most e-commerce operations.

The friction costs money. Every minute of delay at the dock pushes you into the next sort window, which pushes you into next-day or next-next-day carrier pickup, which kills your last-mile SLA. The warehouse cannot manufacture speed; it can only enforce discipline on arrival windows. Tight drayage scheduling, early morning Port of Montreal pickup, pre-arranged dock appointments, and SKU-level barcode verification before arrival all reduce the cost of friction. They also require importer discipline, which is less common than it sounds.

Inventory Accuracy In E-Commerce Is Not Optional

E-commerce last-mile operations run on real-time inventory visibility. If your system says you have 1,200 units of SKU-5847 available for pick and you actually have 890, that's a customer shipment delay, a carrier fee, and a reputation hit. The warehouse is responsible for putaway accuracy, but the importer is responsible for inbound accuracy.

Pallet-to-SKU mismatches happen. You order 40 units per pallet, the shipper ships 35 on some pallets and 45 on others. Or the label says "Size M" but the actual mix is 40% Size L. When receiving finds a mismatch, we flag it for quarantine and hold the SKU until the importer confirms disposition. That's usually a 24–48 hour delay while you contact your vendor and decide whether to accept the overrun, return to vendor, or mark-down the excess. Meanwhile, your inventory system shows nothing available, and your last-mile carrier is waiting for stock to fulfill orders.

Use pre-shipment verification with your vendors. Send the receiving pallet list to your warehouse before the container ships. That way, if there's a discrepancy, you catch it at origin, not in Montreal receiving. FENGYE LOGISTICS can do light pre-putaway barcode spot-checks (typically 5–10% of inbound pallets) for an accessorial fee of CAD 1.50–2.00 per skid, but that only catches gross errors. Full case-level verification is pick-pack work, not receiving work, and it costs labor.

Q4 Surge Requires Committed Dock Space

August through November, e-commerce import volume into Montreal typically increases 60–80% relative to baseline. Port of Montreal container throughput during peak season can exceed 2,400 TEU per week. Every other 3PL in Montreal is running the same squeeze: more containers, fewer dock doors, longer queue times.

If your last-mile operation doesn't pre-commit dock space for Q4, you get allocated on a first-come basis. That usually means off-peak hours: early morning (before 08:00) or evening (after 17:00) dock slots. Early morning works. Evening slots mean receiving until 19:00, then putaway until 22:00, which eats into night-shift labor budgets and delays next-day sort cycles.

Committed Q4 dock windows cost extra (usually a 15–25% premium on the standard rate), but they solve the queue problem. If you're moving 3–5 containers per week during peak season, that premium is cheaper than the cost of dwell, cross-dock delays, and last-mile SLA failures.

Book your Q4 space by June. Most 3PLs in Montreal are already over-committed by July.

Racking Density Versus Pick Velocity

High-density racking (compact pallet racking or drive-in systems) maximizes storage per square foot, but it kills pick velocity. In e-commerce last-mile operations, velocity matters more than density. A 40ft container of mixed SKUs (10–15 different items, 100–300 units each) goes into standard selective racking (24–30 units deep, two-pallet-wide beams, beam height at 7.5–8.5 feet). That gives you fast picking (aisle access to every pallet), easy visual confirmation (no deep racking obstacles), and quick replenishment when stock is low.

If you try to push that same container into compact racking, picking cycle time increases 40–60% because pickers have to navigate aisles, sometimes double-handle pallets, and confirm location more carefully. That lag kills same-day or next-day last-mile fulfillment windows.

Tell your 3PL what your target pick velocity is (units per hour per picker), not what density you want. We'll design the racking around that. Most e-commerce operations in Montreal run 60–90 units picked per picker per hour, which requires selective racking and aisle width of at least 3.5 meters.

Reefer (Temperature-Controlled) Inventory Is a Different Game

If you're moving perishable e-commerce (food, beverage, temperature-sensitive cosmetics) into Montreal for last-mile delivery, the warehouse is not just a dock-and-pick operation. Temperature deviation becomes a compliance issue and a financial liability.

Reefer containers maintain cold chain during transit, but once they're on the dock, you're on the clock. Receiving must happen within 30 minutes of arrival (dock door to reefer bay). Putaway into temperature-controlled racking takes 45 minutes to 2 hours depending on volume. If the chain breaks (door left open, reefer unit failure, temperature data logger shows drift), the entire lot is quarantine-flagged and you have 72 hours to decide: destroy, donate, or retest with a third-party lab. That's CAD 500–2,000 per incident.

Reefer last-mile operations require dedicated doors, temperature monitoring on every pallet, HACCP-grade chain-of-custody documentation, and carrier coordination (reefer trucks run on fewer-per-day schedules than standard LTL). It's not a standard e-commerce play, and it costs 2.5–3.5x the rate of ambient last-mile warehousing.

Real Numbers on Dock Cost and Velocity

A typical 40HC container into Montreal last-mile operations incurs these costs:

Drayage: CAD 2,200–2,600 depending on Port of Montreal terminal location and time of week.
Receiving and putaway: CAD 800–1,200 depending on inspection depth and pallet count.
Storage (if held beyond 14 days): CAD 12–18 per pallet per day in a sufferance facility like FENGYE, where goods remain duty-suspended until release.
Pick-pack labor: CAD 0.40–0.65 per unit depending on SKU complexity, order size, and speed requirements.

If your importer is paying CAD 4,000 all-in per container (drayage + warehouse + pick-pack) for a 40HC with 2,000 units, that's CAD 2.00 per unit. If you're chasing same-day last-mile delivery, add CAD 0.50–1.00 per unit for committed dock space and expedited pick. If you're skipping cross-dock and storing for 21+ days, you'll hit CAD 0.80–1.50 per unit just in storage cost.

Math the cost against your last-mile carrier margin. If your carrier makes CAD 3.50 per unit and your fulfillment cost is CAD 2.50 per unit, you're viable. If the math flips, you're subsidizing orders, which is a different problem than warehouse speed.

What Matters Right Now

Last-mile e-commerce warehouse operations in Montreal are efficient when importers do three things: (1) schedule drayage arrivals into confirmed dock windows, not whenever; (2) verify inbound inventory quality before shipment, not during receiving; (3) understand that 48-hour dock-to-stock is realistic speed, not a minimum threshold.

If your operation is missing one of those, you're paying for speed you're not getting. Talk to your warehouse and your freight forwarder about staggered Q4 schedules and committed dock booking early. The warehouse can optimize for your velocity, but it can't manufacture capacity that isn't there.

Originally published at https://www.fywarehouse.com/news/last-mile-delivery-warehouse-montreal-e-commerce-floor-reality-f4d9282a.