Logistics Terms

What Is Free Time in Container Shipping?

3 min read
What Is Free Time in Container Shipping?

Free time is the number of days a carrier allows you to use or hold a container without incurring extra charges. Once free time runs out, demurrage and detention charges begin.

How free time works

  • Free time at the port covers the days before demurrage starts.
  • Free time outside the port covers the days before detention starts.
  • The number of free days is set by the carrier and can sometimes be negotiated.

Using free time well

Clearing customs early, arranging transport in advance, and returning empties promptly keep you within free time. A forwarder that monitors free-time deadlines helps you avoid unnecessary demurrage and detention charges.

FAQ

Frequently Asked Questions

What happens when free time runs out?
Demurrage applies for containers still in the terminal, and detention applies for containers held outside it. Both are charged per day after free time ends.
Can free time be extended?
Sometimes. Carriers set the free days, but longer free time can often be negotiated upfront, especially on regular lanes.