TDG Compliance in the Warehouse: What the Dock Actually Sees

The Dock-Side Reality of TDG Compliance

A container arrives at FENGYE LOGISTICS marked "DG" on the bill of lading. The broker sends the PARS release, CBSA waves it through, drayage pulls it off the Port of Montreal dock, and we open the container door. Now compliance becomes a warehouse ops problem.

Most importers think dangerous goods compliance is a paperwork exercise—broker file, CBSA clear, move forward. That misses the operational half. TDG rules are about what's physically on the pallet, how it's positioned in the rack, what sits next to it, how high it stacks, how we handle it, who handles it, and how long it can stay in the warehouse. Paper compliance and physical compliance are two different gates.

What TDG Actually Governs Inside a Bonded Warehouse

Transportation of Dangerous Goods Regulations, Part 7, covers storage in licensed facilities. The moment hazmat crosses the dock threshold, we operate under two compliance layers: TDG itself, and provincial/municipal fire codes (in Quebec, that's the National Fire Code of Canada adoption). FENGYE holds TDG storage authorization through Transport Canada—but that authorization is only valid if we execute the physical controls correctly every single time.

TDG divides dangerous goods into nine classes: explosives, gases (compressed, liquefied, dissolved), flammable liquids, flammable solids, oxidizers, toxic/infectious substances, radioactive material, corrosives, and miscellaneous hazardous goods. Within a warehouse, the rules depend on the class and the quantity.

For flammable liquids (Class 3)—which account for a large share of hazmat inbound at Montreal—the storage limit in a single pile is 2,500 litres unless we have engineered segregation and fire suppression rated to the volume. We can't stack one pallet on top of another unless the packaging is rated for stacking pressure. We can't store flammable liquids within 3 metres of oxidizers or toxic chemicals. We can't store them under windows, near exits, or in areas with insufficient ventilation. And we need to maintain a 1.2-metre clearance from ceiling sprinklers and fire detection systems.

Cross-contamination is also an enforcement point. A pallet of corrosives can't be stored above or adjacent to food-grade products or pharmaceuticals. Some importers assume the broker's CAD classification handles this; it doesn't. The broker declares what's in the shipment for duty and tariff purposes. We verify the physical reality and enforce the segregation.

Where Importers and Forwarders Get Caught

The gap between declared and actual is the most common violation point we see on the dock.

A shipper marks a container "DG—Class 3, flammable liquid," but the paperwork says 1,800 litres. When we unload, we count 2,400 litres. Now we have a violation: undeclared quantity, which means the shipper didn't meet TDG packaging standards for that volume, we don't have authorization to store that quantity in that location, and we're liable. We lock the pallet, call the importer and broker, and don't move it until they either remove half of it, re-classify it, or arrange for correction at a certified repair facility.

Second common trap: mixed classes on one pallet. A shipper packs flammable liquid on the bottom, oxidizer on the middle shelf, corrosive on top, all under one pallet wrap. The broker's CAD lists "mixed hazardous shipment—multiple classes." Standard compliance, looks fine on the bill of lading. On the dock, we can't store that pallet as-is because the classes are incompatible. Flammable liquid and oxidizer can't be in the same storage area unless there's engineered segregation (concrete wall, distance, fire rating). We unstack it right there at the dock door, which kills the importer's dock-to-stock SLA and triggers pick-pack delays.

Third: packaging that doesn't match the label. A drum is marked "Flammable Liquid, Class 3," but the actual drum is a food-grade steel container not certified for hazmat transport or storage. TDG requires specific packaging specifications based on the product and the quantity. A food-grade drum isn't one of them. We reject the inbound, and the importer has to arrange corrective recirculation or export reversal.

Segregation, Storage Limits, and Racking Design

FENGYE's bonded warehouse has dedicated hazmat racking segregated by class. Class 3 (flammable liquids) sits in a dedicated zone with no windows, enhanced ventilation, and a 2,000-litre limit in our current license. Class 8 (corrosives) is in a separate climate-controlled area with secondary containment underneath high-value chemical imports. Class 5 (oxidizers) is isolated—more than 3 metres from Class 3 and Class 8—because oxidizers accelerate fire risk in the presence of flammable materials.

Racking density is lower for hazmat than for food or general merchandise. We can't stack pallets six levels high in a hazmat zone if the TDG class or the packaging specification limits stacking to three. This reduces our throughput per square foot in that zone, which increases per-unit cost for the importer. Some importers balk when they see the quote. The alternative is shipping non-TDG-compliant product, which isn't an alternative.

Temperature-controlled storage for certain hazmat is also mandatory. Class 3 flammable liquids stored above 50°C become a fire risk; some have flash points in the 35–45°C range. Q4 inbound spikes create temperature control bottlenecks. If we run out of climate-controlled hazmat capacity, the container sits in the holding area (unbonded, higher cost, higher demurrage exposure) until space opens up. This is a real Q4 logistics problem in Montreal that most importers don't budget for.

Handler Certification and Training

TDG requires that anyone handling dangerous goods in the warehouse—dock workers, put-away crew, inventory staff—holds a valid TDG certification. In Quebec, this is through Canadian Food Inspection Agency's (CFIA) Transport Canada program or a province-approved equivalent. Our staff renew every three years. If we load a container for export or perform pick-pack on a hazmat order, the person doing it must have current certification in their file. If CBSA or an inspector audits the warehouse and finds a non-certified handler touching a hazmat pallet, we face a violation and potential license suspension.

This limits flexibility. We can't pull a cross-dock worker to help in hazmat pick-pack on a Tuesday just because we're short-staffed. We also can't hire temporary labor without vetting their TDG certification first. For importers shipping hazmat through FENGYE, this means predictability in cost (we can't negotiate labor down) and predictability in processing window (we process hazmat during certified-handler shifts, not outside them).

Dwell, Documentation, and Inspection Risk

Hazmat containers dwell longer at FENGYE than general cargo because we perform compliance verification before putaway. A standard container moves dock-to-stock in 24–48 hours. A DG container takes 48–72 hours because we physically verify the shipment, cross-reference labels and manifests, check packaging integrity, confirm segregation space is available, and only then position it. Drayage detention charges accrue if the importer hasn't paid Port of Montreal free time or if dwell extends into day 4.

CBSA also inspects hazmat inbound at a higher rate than general merchandise. If an exam is triggered (which happens on 5–10% of hazmat arrivals at Montreal), we're looking at an additional 24–48 hour hold. Exam fees run $350–$1,200 depending on the container size and the extent of the inspection. The importer bears the cost, but we bear the operational disruption: blocked dock door, delayed next-day outbound commitments, and cross-dock cutoffs missed.

Documentation requirements are also stricter. We keep manifest copies, shipper's declarations, TDG labels, packaging certificates, and segregation logs for seven years. CBSA or Transport Canada can request these records during an audit. Missing documentation or discrepancies are violations that don't just affect that one shipment; they can trigger a compliance review of our entire hazmat operation and temporary suspension of TDG authority.

Cost Pass-Through and Negotiation Points

Hazmat warehousing is not commodity storage. Our in/out fee for hazmat is $40–$60 per pallet, versus $12–$18 for general merchandise. Handling charges for pick-pack are 30–40% higher because of the certification requirement and the risk. Some importers push back, asking why they can't store hazmat in the regular warehouse. The answer is Transport Canada authorization and insurance. If we store hazmat outside our licensed zone, we lose TDG authority and our warehouse insurance voids.

For importers shipping high-volume hazmat (e.g., regular flammable liquid orders), we negotiate an SLA: reserved racking, guaranteed dock window, dedicated certified staff on certain days. This costs more upfront but reduces per-unit handling and dwell time. Without an SLA, hazmat gets slotted into available space on a first-come basis, which means variable processing windows and higher risk of Q4 delays.

Cross-Border Movement and CETA Considerations

If an importer is consolidating hazmat from multiple U.S. suppliers and exporting it from Montreal under CUSMA/CETA, TDG compliance is required in both directions. U.S. DOT (Department of Transportation) rules and Canadian TDG rules are aligned on most classes but differ on some packaging and labeling details. FENGYE verifies that hazmat arriving from the U.S. meets Canadian TDG standards before we accept it for consolidation. If a pallet doesn't conform (e.g., U.S. DOT label format that doesn't match TDG labeling), we require relabeling before we can store or handle it.

Export hazmat also requires proper TDG certification on the outbound documentation. If we're performing consolidation services for a customer shipping multiple small hazmat orders into one container, we verify that the consolidated manifest is correct, the segregation is valid for the destination country's regulations, and all TDG paperwork is signed off. This is a coordination point between FENGYE, the exporting importer, and the receiving broker in the destination country.

Practical Next Steps for Importers and Forwarders

If you're shipping hazmat into Montreal, here's what we need before the container arrives. First, confirm that your shipper has included TDG shipping papers inside the container AND a copy in the container bay. Second, verify that all labels (TDG primary and secondary labels) are affixed to the outside of the containers and that they match the bill of lading declaration. Third, confirm the package specification code—this is the key detail that tells us whether stacking is allowed and what segregation applies. Fourth, provide the quantity in litres or kilograms (not just "full container"), because TDG storage limits depend on exact quantity.

If you're consolidating hazmat or mixing classes, involve a customs broker who understands TDG (many don't) before shipping. A broker's job is duty classification and regulatory clearance; a warehouse's job is physical compliance and safe handling. If the two don't align, the container doesn't move.

FENGYE's team can walk through a hazmat inbound plan before you commit to a shipment—dock window, processing time, storage cost, and any special handling. Most importers doing this save time and cost by catching segregation or packaging issues before the container lands at Port of Montreal.

Originally published at https://www.fywarehouse.com/news/tdg-compliance-in-the-warehouse-what-the-dock-actually-sees-e923c4bc.