Free Time
Free Time is the grace period a carrier or terminal allows before charges start to run on a container. It comes in two forms: time a container may sit at the terminal after discharge before demurrage applies, and time the consignee may keep the container outside the terminal (for unpacking) before detention applies. Free time is agreed in the freight contract, usually a set number of days.
The purpose of free time is to give the consignee a reasonable window to clear customs, collect and return the equipment without penalty. Once it expires, demurrage and detention accumulate daily and can quickly become expensive. Managing shipments to stay within free time — by clearing and collecting promptly and returning empties on time — is one of the most direct ways importers control avoidable logistics costs.
Free time is the buffer between a smooth delivery and a mounting demurrage and detention bill — and blowing through it is one of the most common avoidable costs in importing. Knowing exactly how many free days a shipment has, and driving clearance and container return inside that window, directly protects the bottom line.
What is the difference between demurrage and detention free time?
Demurrage free time covers the container sitting at the terminal; detention free time covers keeping the container outside the terminal before it is returned.
How long is free time?
It is set in the freight contract — commonly a few days — after which demurrage and detention accrue daily.