Free time vs last free day: free time is the allowance, counted in days; the last free day is the date the allowance ends, after which charges accrue per day.
What is Free Time in shipping?
Free time is the allowance of days a container can spend at the terminal, or out with the importer or exporter, before the ocean carrier or terminal starts charging for it. It is set by the carrier's tariff or your service contract (or, on an NVOCC booking, the NVOCC's tariff or rate arrangement), and it varies by carrier, port, terminal and container type. Its last day is the last free day (LFD).
Two clocks: demurrage and detention
| Clock | Where the container is | Usually starts | Stops | Charge after it ends |
|---|---|---|---|---|
| Demurrage free time | Inside the terminal or container yard | Imports: at discharge. Exports: when the loaded container is received | Imports: gate-out. Exports: loading aboard the vessel | Demurrage |
| Detention free time | Outside the terminal: at your dock or on the road | When the container leaves the terminal | When the container is returned to the place the carrier names | Detention (per diem) |
Not every tariff separates the clocks. Some carriers offer a combined demurrage and detention allowance in some regions, and Maersk's India import rules start detention free time at discharge rather than gate-out. Terminal and rail operators can also set their own free time and storage charges, separate from the carrier's. Read the rule that applies to your booking rather than assuming.
How the days are counted
- Working or calendar days: Hapag-Lloyd's US detention tariff, for example, counts free time in working days, defined as days the terminal or facility is open for container interchange, then charges every calendar day once free time ends
- Extensions: the same carrier's US rules pass on any extra free time a terminal grants when access is impeded, and exclude time lost to a cancelled or delayed vessel
- Holds and exams: tariffs such as Hapag-Lloyd's bill demurrage caused by customs holds, exams or a shortage of trucks to the cargo, so the clock keeps running
What the FMC rules say
The FMC's interpretive rule (46 CFR 545.5) says it will weigh whether demurrage and free time are related to when cargo is actually available for retrieval, and that detention charged when empties cannot be returned is likely to be found unreasonable. Its billing rule (46 CFR 541.6) requires every demurrage or detention invoice to state the free time allowed in days, its start and end dates, and the container availability date for imports or the earliest return date for exports, so you can check the count yourself.
How to stay inside free time
- Ask for both clocks, and whether they are working or calendar days, with the quote
- File the ISF and have the entry lodged before arrival so customs release does not eat the allowance
- Read the arrival notice as soon as it comes and book drayage against the ETA
- Plan the unload and the empty return together; a dropped container keeps using detention free time
- For LCL, the CFS sets its own, usually short, free time before storage starts
Container tracking shows discharge and gate events by container number, and our drayage service books the pickup as soon as the container is available.
Related terms
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