Free Time is the number of calendar days a container can sit at a port or terminal without incurring demurrage or detention charges. Carriers grant free time at the port of discharge (typically 3-7 calendar days for standard cargo, longer for project cargo or where rate-card concessions apply) and at the inland depot before the empty container must be returned (typically 5-10 calendar days). Once free time expires, the demurrage or detention clock starts and rates escalate in tiered structures that can reach hundreds of dollars per container per day. Free time is the buffer between vessel arrival and the moment storage charges begin to accrue.
Standard free time by carrier and port
| Lane | Standard free time at destination | Notes |
|---|---|---|
| Trans-Pacific (China-US West Coast) | 4 calendar days | LA/Long Beach typically tightest |
| Trans-Pacific (China-US East Coast) | 5-7 calendar days | Longer transit allows longer free time |
| China-Northern Europe | 5-7 calendar days | Rotterdam, Hamburg, Antwerp |
| China-Mediterranean | 5-7 calendar days | Genoa, Barcelona, Valencia |
| China-Australia (Sydney, Melbourne) | 5-7 calendar days | Reefer cargo often shorter |
| China-Australia (Brisbane, Fremantle) | 5-7 calendar days | Smaller ports |
| Intra-Asia (China-Japan, China-Korea) | 3-5 calendar days | Shorter transit, shorter free time |
| China-Middle East | 5-10 calendar days | Project-cargo lanes longer |
| Reefer cargo | 2-3 calendar days | Plug-in capacity is the constraint |
| DG cargo | 1-3 calendar days | Hazmat handling premium; faster removal required |
These are starting points only. Specific contracts negotiate free time as part of the rate-card. Volume buyers often secure 7-14 days free time as part of the carrier contract for high-volume lanes.
How free time is counted
Free time counts in calendar days, not business days, in most carrier contracts. Three counting nuances matter:
- Vessel-arrival day vs container-available day. Free time typically starts on the day the container is discharged from the vessel and made available at the terminal, not the day the vessel arrives at port. The two can differ by 1-3 days.
- Public holidays. Most carriers count public holidays as free-time days (the clock keeps running). A US importer with a 4-day free-time window that includes a Christmas long weekend effectively has only 1-2 productive days for pickup.
- First-day vs last-day inclusion. Contracts vary on whether the first day (discharge day) counts as day 1 or day 0. The same applies to the last day. Read the carrier’s specific tariff for the lane.
For DG cargo, free time is typically counted in 24-hour periods rather than calendar days, with the clock starting at the actual discharge time. The tighter time pressure on DG cargo reflects the reduced storage capacity for hazmat at most terminals.
Demurrage tiers after free time expires
Once free time expires, demurrage rates escalate in tiers:
| Days past free time | Typical demurrage per 20’GP | Typical demurrage per 40’GP |
|---|---|---|
| Day 1-3 | USD 75-125 | USD 100-200 |
| Day 4-7 | USD 150-250 | USD 200-400 |
| Day 8+ | USD 250-500+ | USD 400-800+ |
Rates double or triple in each successive tier. A 40’GP that sits 14 days past free time can accrue USD 5,000-10,000 in demurrage alone. For DG cargo, surcharges apply on top.
How free time catches buyers off guard
Three failure patterns recur:
- Customs delay eats the free time. A cargo held 5 days for customs inspection (TSCA verification, physical inspection, valuation review) consumes the free-time window before the buyer can pick it up. Demurrage starts despite the buyer being ready to take delivery.
- B/L surrender delay. The original bill of lading must reach the consignee for cargo release at the destination. If the original B/L is in transit when the vessel arrives, the cargo cannot be released until the B/L is presented. This is the classic “B/L race the cargo” problem.
- Trucker capacity gap. Free time is calculated from the moment the container is available at terminal. If the buyer’s trucker is fully booked for the next 5 days, the container sits and demurrage accrues even though the buyer’s documentation is in order.
How buyers can extend free time
Three negotiation levers are available:
- Carrier rate-card negotiation. Volume buyers (USD 5 million+ annual freight spend with a carrier) can negotiate 7-14 days free time as part of the contract. Spot-rate buyers get the standard carrier free time only.
- Demurrage tariff exemption for delays not caused by the buyer. US Federal Maritime Commission rules under the Ocean Shipping Reform Act 2022 require carriers to consider buyer-side delays (customs hold, port congestion, trucker shortage) when assessing demurrage. Buyers should preserve documentation and dispute disproportionate demurrage charges.
- Bonded warehouse routing. Cargo moved into a bonded warehouse before free time expires can sit there at lower storage cost (USD 5-15 per CBM per month) versus accruing terminal demurrage. The trade-off: drayage cost to move the container.
Practical sourcing notes
For chemical buyers managing free-time risk:
- Confirm the free-time window in the carrier’s rate-card before booking. Don’t assume it’s industry standard.
- Plan for B/L logistics. If using telex release or Sea Waybill, confirm the carrier’s release process avoids the original-B/L race.
- Pre-book trucking for the first 1-2 days after expected vessel discharge.
- For DG cargo, plan for 24-hour pickup capability. Free time is tightest on hazmat.
- Track the demurrage tariff for each lane and each carrier; the rates differ significantly.
Related terms
Demurrage is the charge that accrues once free time at port expires. Detention is the charge once inland free time expires. Terminal Handling Charges (THC) are separate from demurrage. B/L surrender is critical to release cargo before free time expires. IMDG Class 3 and other DG classes have shorter free-time windows.