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Free Time
Definition
Free time is the number of days a container can stay at the terminal, or stay out with the importer, before demurrage or detention begins; the last free day (LFD) is the final day of it.
In simple English
It is the grace period. Use the container, or leave it at the port, within the free days and there is no charge; after the last free day, the daily charges start.
What it means
There is no single national number. Free days, and the event that starts them, come from the carrier's or terminal's tariff or the service contract. That is why the FMC billing rule requires every demurrage or detention invoice to show the allowed free time in days, its start and end dates, and, for imports, the date the container became available.[1]
The last free day is the final day a container can stay at a port, terminal or rail yard without demurrage; after it, charges accrue per container per day until the box leaves.[2] Detention usually has its own free days that start once the box is picked up. When judging whether charges are reasonable, the FMC looks at whether they were tied to when the cargo was actually available.[3]
- Container is discharged and becomes available at the terminal
- Terminal free time ends on the last free day; demurrage can start after it
- The loaded box is picked up (out-gated); demurrage stops
- Equipment free days run; detention (per diem) can start after them
- The empty is returned (in-gated); detention stops
Example
A carrier notice shows a container available on the 3rd with four free days at the terminal. If the tariff counts the availability day as day one, the last free day is the 6th. A pickup booked for the 6th stops demurrage from ever starting; a pickup on the 9th means three days of it.
Related
Related terms
- DemurrageDemurrage is a charge for a loaded container that stays at the marine terminal after its free time runs out.Glossary
- DetentionDetention is a charge for holding equipment beyond the free time allowed: in ocean shipping, for keeping the...Glossary
- Pre-PullA pre-pull is picking up a container from the port before its delivery day and parking it at the trucker's...Glossary
- General OrderGeneral order (GO) is CBP custody for imported cargo that was not entered or released in time; the cargo is...Glossary
- Marine Terminal OperatorA marine terminal operator (MTO) runs the wharves, container yards and other terminal facilities that ocean...Glossary
Related questions
- How Long Can a Container Stay at the Port?There is no single limit; three clocks apply. Commercially, a container can sit at the terminal for the free...Answer
- What Happens After a Container Arrives at Port Newark?After the vessel discharges, the container has to be released by both Customs and the ocean carrier before...Answer
Related freight problems
Related guides
- Demurrage vs. DetentionWhere each clock starts and stops, and the FMC invoice rules.Guide
- Short-Term Freight Storage vs. DemurrageWhen pulling a box off-terminal costs less than waiting.Guide
- Chassis Split Fee, Pre-Pulls & Street TurnsDrayage accessorials: what each pays for and which move stops it.Guide
Sources
- Legal Information Institute, Cornell Law School, “46 CFR § 541.6, Contents of invoice,” Federal regulation. Accessed September 2026.
- 3PL Center, “What Is the Last Free Day (LFD)?,” Industry publication. Accessed September 2026.
- Legal Information Institute, Cornell Law School, “46 CFR § 545.5, Unjust and unreasonable practices with respect to demurrage and detention,” Federal regulation. Accessed September 2026.
General operational information, not legal, customs or regulatory advice. Rules and rates change; confirm current requirements with the agency, carrier or contract that governs your shipment.