Free Time: Definition, Calculation & Practical Examples

Standard free time policies do not automatically pause for customs delays. However, you can request extensions by providing documentation such as customs hold notices, inspection requests, or missing document evidence. Approval is discretionary and depends on carrier relationships and the reason for delay. Force majeure events (port strikes, natural disasters) may qualify for automatic extensions under specific tariff provisions.

Most carriers charge a full day's demurrage or detention even if you exceed free time by minutes. The cutoff is typically midnight on the last free day. Some terminals offer grace periods of 2-4 hours, but this is not standard practice. To avoid charges, schedule pickups or returns at least 6 hours before the deadline to account for traffic, equipment issues, or documentation problems.

No—this varies by carrier tariff. European carriers often exclude Saturdays, Sundays, and national holidays, while Asian carriers typically use calendar-day calculations that include all days. US carriers present mixed practices. Always check the "Free Time Calculation Basis" clause in your Bill of Lading or service contract. The notation "5 working days" excludes non-working days, while "5 calendar days" includes all days.

For cargo transshipped through intermediate ports, free time usually begins at the final discharge port, not at transshipment hubs. However, if delays at the transshipment port cause extended storage, some carriers may start the clock there. Review your contract's "Through Bill of Lading" clauses to understand liability. Industry practice typically protects shippers from charges during carrier-controlled transshipment operations.

No—free time applies individually to each container. If you have 5 containers with 7 days free time each, you cannot use 35 total days across all units. Each container must be picked up or returned within its own free time window. Some carriers offer "pooled demurrage" programs for high-volume shippers, allowing charge offsets between early and late pickups, but this requires specific contractual arrangements.

The Equipment Interchange Receipt (EIR) showing the gate-out timestamp is your primary evidence. This document is generated when your trucker collects the container from the terminal. Keep copies of all EIRs with timestamps clearly visible. In disputes, terminal gate logs (accessible through carrier customer portals) provide secondary verification. Ensure your trucking company provides EIRs immediately after pickup to confirm compliance.

Demurrage applies when a container remains at the terminal beyond free time without being picked up (import) or when you deliver it to the terminal too early (export). Detention applies when you've taken the container outside the terminal but haven't returned it within the allowed timeframe. Demurrage typically ends when you remove the container; detention begins at that point and continues until you return the empty to a designated depot.

Limited negotiation is possible even for smaller shippers (20-50 TEU annually). Focus on relationship-building with specific carrier account managers and demonstrate consistent shipping patterns. Request extensions for individual shipments when you can provide advance notice of legitimate delays (warehouse strikes, unexpected inspection requirements). Joining shipper associations or using freight forwarders with consolidated volumes can also improve your negotiating position.

Standard dry container demurrage ranges from $75-150 per day for the first 5 days after free time, escalating to $150-250 per day thereafter. Reefer containers incur higher rates ($200-400 daily) due to power costs and equipment scarcity. Rates also vary by port—congested facilities like Los Angeles/Long Beach charge premium rates ($125-200/day) compared to less busy ports ($60-100/day). Always review your carrier's published tariff for exact rate structures.

Carrier policies vary significantly. Widely recognized force majeure events (hurricanes, earthquakes, port closures) may trigger automatic extensions announced via carrier advisories. Lesser disruptions (labor slowdowns, traffic congestion, equipment shortages) typically require individual extension requests with supporting documentation. Review your service contract's "Force Majeure" clause—some contracts specify automatic 3-5 day extensions for qualifying events, while others require formal applications.

When you request a container to be pre-pulled from the terminal stacks to expedite pickup (common practice to avoid long gate queues), free time calculation remains unchanged—it still begins from the discharge date, not the pre-pull date. However, some terminals charge separate pre-pull fees ($25-75) if the container isn't collected within 24-48 hours of the pre-pull request. This can create additional costs even within your free time window.