Free Time for Imported Containers and LCL Cargo
Interlink編集部What Is Free Time for Imported Containers and LCL Cargo?
Free Time for imported containers and LCL cargo refers to the predetermined period during which no additional charges such as Demurrage, Detention, CFS storage fees, or warehouse storage fees will be incurred for the import cargo or container.
Free Time is not simply a “free period.” It serves as the practical deadline for when imported FCL cargo must be picked up from the CY, when empty containers must be returned after pickup, or when imported LCL cargo must be released from the CFS.
Even though the term “Free Time” is used generally, its meaning varies depending on the cargo or container involved, the location, and the conditions that conclude the period.
For imported FCL cargo, the two main Free Time components to be separately confirmed are:
- Demurrage Free Time until the fully loaded container is picked up from the CY
- Detention Free Time until the empty container is returned to the designated return location after CY gate-out
For imported LCL cargo, rather than container-based Detention, the focus is on the free storage period for individual cargo after release is possible at the CFS and the starting point for calculating CFS storage fees.
Even if the Import Permit has been granted, exceeding Free Time may occur if procedures such as D/O exchange, D/O-less processing, cost settlement, reflection of cargo release information onsite, gate-out reservations, delivery vehicle arrangements, acceptance at the delivery destination, or empty container return are not completed in time.
Therefore, freight forwarders need to manage not only Free Time as a number of days but also track chronologically the Last Free Date, earliest possible gate-out date, scheduled gate-out date, delivery date, devanning completion date, and empty container return date.
This article covers an overview of Free Time related to imported cargo. Detailed verification methods for Demurrage, Detention, CFS storage fees, and individual invoices are addressed in their respective specialized articles.
Scope Covered in This Article
| Item | Content Covered in This Article | Content Covered in Other Articles |
|---|---|---|
| Free Time for Import Cargo | Target period, start date, ending conditions, Last Free Date, holidays, and extension confirmation. | The overall picture of Free Time is the main scope of this article. |
| Demurrage Free Time | The free period from vessel discharge to CY gate-out of the loaded container. | Definition, fee structure, causes, and cost responsibility are covered in the Demurrage article. |
| Detention Free Time | The free use period from CY gate-out to empty container return. | Return conditions, fees, and causes are covered in the Detention article. |
| Combined Demurrage and Detention | Contract terms treating the period from discharge to empty container return as a single period. | Individual Combined D&D claims are covered in respective claim confirmation articles. |
| Free Storage Period for Imported LCL Cargo | CFS release date, free storage period, and relation with CFS storage charges. | Details on CFS release for imported LCL cargo and CFS storage charges are covered in other articles. |
| Last Free Date | The final date without additional charges and how to confirm it. | Calculation of claim days for individual cases is handled in Demurrage and Detention claim confirmation articles. |
| Extension of Free Time | Timing, subjects, supporting evidence, and limits of extension requests. | Final decisions on contract negotiation or claim exemption are made by the shipping line or NVOCC. |
| CY Gate-Out for Imported FCL Cargo | Back-calculation management to gate out within Demurrage Free Time. | Terminal pickup and drayage for imported FCL cargo gate-out are covered in a separate article. |
| Empty Container Return | Deadline management to return within Detention Free Time. | Return reservations and return locations are covered in Empty Container Return and Detention articles. |
| Assumption of Additional Charges | Causes of deadline overruns and organizing confirmation documents. | Cost responsibility and claim objections are handled in each article on additional charges. |
Practical Background for Setting Free Time
Marine containers are transportation equipment continuously rotated and used by shipping lines and others.
If loaded containers remain at the CY for extended periods at the import location, or empty containers are not returned promptly after gate-out, those containers cannot be used for the next shipment.
Therefore, shipping lines or NVOCCs recognize a certain period as Free Time, after which Demurrage or Detention charges are imposed.
On the other hand, import LCL cargoes face limited storage space, handling equipment, and storage capacity within the CFS. If individual cargo is not picked up for a long time after it becomes available for release, the CFS operation and cargo handling are affected.
For this reason, CFSs or warehouses set a free storage period, after which a CFS storage fee or warehouse storage fee may be charged for cargo exceeding that period.
Free Time is not a system that permits indefinite free storage for the shipper or free container use; rather, it is a limited grace period established to facilitate cargo pickup and equipment return.
There Is More Than One Type of Free Time
| Category | Main Target | Typical Start Point | End Condition | Main Charges for Exceeding | Practical Considerations |
|---|---|---|---|---|---|
| Demurrage Free Time | Imported loaded containers at the CY or terminal | Vessel discharge date, berthing date, CY in-gate date, or the day after, etc. | CY Gate-Out of the loaded container | Demurrage | Work backwards from Import Permit, D/O, delivery booking, and demurrage timing. |
| Detention Free Time | Containers moved out from the CY by the shipping line, etc. | CY Gate-Out date of the loaded container or the day after, etc. | Gate-In of the empty container to the designated depot | Detention | Calculate backward from delivery, devanning, return booking, and depot reception hours. |
| Combined D&D Free Time | Imported containers from discharge to return | Vessel discharge date, etc. | Return of the empty container to the designated location | Combined Demurrage and Detention | Days used at the CY reduce the remaining time after release. |
| CFS Free Storage Period | Imported LCL cargo sorted and stored at CFS | CFS in-gate date, devanning completion date, available release date, etc. | CFS Gate-Out of individual cargo | CFS Storage Fee | Confirm the day the cargo becomes physically and system-wise available for release. |
| Warehouse Free Storage Period | Cargo stored at bonded warehouses or general warehouses | Cargo receipt date or contract reference date | Release from the warehouse | Warehouse Storage Fee | May be a different contract and fee from CFS storage. |
| Special Contract Free Time | Cargo or containers under individual contracts or specific trade routes | Date specified by contract or Tariff | Release or return as specified by contract | Contractually prescribed additional charges | Confirm the agreed conditions for the specific case, not the general Tariff. |
Simply asking, "How many days is the Free Time?" is not enough to determine the correct deadline.
It is necessary to confirm which Free Time it is, the day counting starts from, and what completion event ends the Free Time period.
Separate Method, Combined Method, and Special Conditions
| Contract Type | Period Calculation | Main Features | Practical Notes |
|---|---|---|---|
| Separate Method | Demurrage Free Time and Detention Free Time are set separately. | The two periods are managed separately, divided by CY gate-out. | Check the new Detention deadline after CY gate-out. |
| Combined Method | The period from vessel discharge to empty container return is treated as a single Free Time. | Days spent inside the CY and days used after gate-out are combined. | The later the CY gate-out, the fewer remaining days are available for delivery and return. |
| Special Conditions Method | Individual conditions are set according to route, customer, cargo, contract, container, or timing. | Free Time may be longer or shorter than the standard tariff. | Confirm by checking quotations, Service Contracts, Booking Confirmations, etc. |
| Extension Agreement Method | Additional days are allowed on top of the standard or individual Free Time. | This may be limited to specific shipments, containers, or charge items. | Confirm extension scope, number of days, charge items, and validity period in writing. |
In the case of Combined Demurrage & Detention, it may not be possible to separately specify "how many days of Demurrage Free Time" and "how many days of Detention Free Time" apply.
Also, sometimes only Demurrage is extended while Detention remains under the standard conditions. Confirm not only the number of extension days but also which charge items the extension applies to.
Key Date and Period Terms Used in Free Time
| Term | Meaning | Practical Use | Notes |
|---|---|---|---|
| Free Time | Period during which no additional charges apply | The schedule for the relevant process is counted backward from this period. | Confirm the applicable cost items as well as the number of days. |
| Free Days | Number of days recognized as Free Time | Confirm the standard or individually agreed number of days. | Check whether these are calendar days or working days. |
| Start Date | Reference date from which Free Time calculation begins | Identify based on cargo discharge, gate-out, CFS in-gate, etc. | Confirm whether the reference date is included or counted from the following day. |
| Last Free Date | Last day on which processing can be done without additional charges | This is the key date for deciding cargo removal or container return schedules. | Do not estimate from general tariffs; verify for the specific case. |
| First Chargeable Date | First day on which additional charges apply | Used as the start date for the billing period. | Usually the day after the Last Free Date, but confirm the specific conditions. |
| Calendar Days | Consecutive calendar days including weekends and holidays | Count all days within the period. | The handling of holidays may differ during Free Time and after overrun. |
| Working Days | Business days excluding contractually defined non-working days | Calculate the number of days excluding holidays. | The excluded days vary depending on the port, country, and carrier. |
| Chargeable Days | Days billed after Free Time has been exceeded | Allocate days according to tiered rate structures. | Some terms treat any part of a day as a full day for charging. |
Confirm the Starting Date and Ending Conditions Separately
| Subject | Candidate Starting Dates | Ending Conditions | Reference Documents |
|---|---|---|---|
| Import Demurrage | Vessel discharge date, berthing date, CY in-gate date, or the day after consolidated in-gate date, etc. | CY gate-out of the loaded container | Tariff, Arrival Notice, Container-specific Free Time screen |
| Import Detention | CY gate-out date of the loaded container or the following day, etc. | Gate-in of empty container at designated return location | Tariff, EIR, Return Notice, Return EIR |
| Combined D&D | Discharge date of loaded container, etc. | Gate-in of empty container at designated return location | Service Contract, Booking, Tariff |
| CFS Storage Charges | CFS in-gate date, devanning date, cargo release date or the following day, etc. | CFS gate-out of individual cargo | CFS rate sheet, Release Notice, CFS gate-out record |
| Warehouse Storage Charges | Warehouse in-stock date or the day after the free period ends, etc. | Release of cargo from the warehouse | Warehouse contract, rate sheet, in/out stock records |
The ending condition of Free Time is not when arrangements or bookings are completed.
Usually, for Demurrage, the actual CY gate-out is critical; for Detention, the actual return of the empty container; and for CFS storage charges, the actual release of each cargo is important.
Differences in Import FCL, LCL, and Special Cargo
| Cargo / Container Type | Main Check Items | Relevant Free Time / Charges | Reasons for Frequent Changes in Conditions | Key Points to Confirm |
|---|---|---|---|---|
| Import FCL Dry Container | CY gate-out of loaded container and empty container return | Demurrage, Detention, Combined D&D | Because of two-stage management inside CY and after gate-out | Last Free Date, delivery date, devanning date, and return date |
| Import LCL Cargo | Individual cargo sorted at CFS | CFS Storage Fee, Warehouse Storage Fee | Because cargo is released by individual units rather than by container | CFS in-gate, devanning, sorting, available release date, and gate-out date |
| Reefer Container | Container under temperature control | Demurrage, Detention, power supply and monitoring fees | Due to limited power supply equipment, devices, and return locations | Free Time, power supply fees, temperature settings, gate-out and return conditions |
| Dangerous Goods Container | Loaded container with dangerous goods | Demurrage, Detention, Dangerous Goods storage and handling fees | Because of strict storage restrictions at ports and terminals | Dangerous Goods Class, UN number, availability of free time, and immediate gate-out conditions |
| Flat Rack / Open Top | Special shape or over-gauge cargo | Demurrage, Detention, Special handling fees | Due to limited vehicles, handling equipment, and return depots | Chassis, handling reservation, gate-out routes, return depot |
| Tank Container | Tank carrying liquids, chemicals, etc. | Demurrage, Detention, cleaning and residue-related fees | Because cleaning and return conditions are individually specified | Cleaning requirements, return location, certificates, and residues |
| Quarantine / Other Regulated Cargo | Food, plants, animals, pharmaceuticals, etc. | Demurrage, CFS storage fees, inspection-related fees | Because inspections and government procedures require time | Inspection date, documents, expected permits, and earliest gate-out date |
Key Items to Confirm for Free Time
| Item to Confirm | Details to Check | Main Reference Materials | Common Mistakes |
|---|---|---|---|
| Applicable Charges | Demurrage, Detention, Combined D&D, CFS or warehouse storage | Tariff, contract, billing information | Treating all as the same Free Time |
| Applicable Cargo / Container | B/L number, container number, size, type, and cargo | B/L, Arrival Notice, Booking | Using terms for different containers or cargo |
| Free Days | Standard days, individual days, or days after extension | Contract, quotation, Free Time screen | Confusing general tariff with individual contract |
| Start Date | Reference date such as cargo unloading, Gate-Out, or CFS delivery | Vessel status, EIR, CFS records | Misunderstanding whether the reference date is included or if counting starts the next day |
| Last Free Date | Last day of the free period | Individual carrier screens, contracts | Deciding solely by in-house calculations |
| Handling of Holidays | Saturdays, Sundays, public holidays, year-end/new year, Golden Week, etc. | Tariff, sales information, contracts | Assuming holidays are always excluded |
| Conditions for Ending Free Time | CY Gate-Out, empty container Gate-In, or CFS Gate-Out | EIR, gate records, release records | Using booking date or departure date as the end date |
| Excess Charges | Daily rate, tiered rates, currency, taxes, minimum charges | Tariff, quotation, invoice | Calculating all excess days using the same daily rate |
| Extension Conditions | Application deadlines, applicable charge types, extension days, applicable containers | Approval email, contract amendments, carrier responses | Making decisions based solely on verbal approval |
Practical Workflow Based on Free Time
- Receive the Arrival Notice and confirm the B/L number, container number, cargo, and delivery location.
- Confirm whether the case involves FCL, LCL, Reefer, hazardous goods, or special containers.
- Confirm which Free Time applies: Demurrage, Detention, Combined D&D, or CFS storage.
- Check the standard Free Time, any individual Free Time agreements, and whether extensions have been agreed.
- Confirm the Start Date, method of counting days, and the Last Free Date.
- Verify whether calendar days or working days are used.
- Check the schedule for Import Permit, customs inspection, and other regulatory procedures.
- Confirm processing for Original B/L, Surrendered B/L, Sea Waybill, and Delivery Order (D/O).
- Review cost settlements such as import freight, THC, D/O fee, and CFS charges.
- Confirm the date on which cargo can be picked up at the CY or CFS.
- Check the cargo pickup reservation, drayage arrangements, or delivery vehicles.
- Confirm the delivery destination’s acceptance date, vehicle conditions, and cargo handling equipment at the delivery site.
- For FCL, confirm devanning work times and locations for empty container return.
- Confirm return reservations, depot reception hours, and the Detention Last Free Date.
- For LCL, confirm the CFS cargo release date, free storage period, and vehicle arrangements.
- If completion within the deadline appears unlikely, proceed simultaneously with extension applications and alternative arrangements.
- Notify related parties of the expected overrun date, estimated costs, causes, and planned responses.
- After cargo release and container return, retain the EIR, gate records, or CFS cargo release documentation.
Example of Calculating Free Time Backwards
The following table is a hypothetical example for explanation purposes. In actual cases, it is necessary to confirm the relevant shipping line, NVOCC, CFS, and contract terms.
| Item to Confirm | Assumed Details | Task Calculated Backwards | Notes |
|---|---|---|---|
| Demurrage Last Free Date | June 12 | Complete CY gate-out by June 12. | Confirm the actual gate-out date, not the date of booking. |
| Delivery Destination Acceptance Date | June 11 | Plan CY gate-out on the morning of June 11. | Secure both the gate-out reservation and the delivery appointment simultaneously. |
| Devanning Required Time | 1 day | Complete by June 11 or the morning of June 12. | Confirm manpower, forklifts, and cargo volume. |
| Detention Last Free Date | June 14 | Return the empty container by June 14. | A different calculation applies for the combined method. |
| Depot Return Acceptance Time | Until 4:00 PM on weekdays | Gate-in before the acceptance deadline on June 14. | Account for return reservation and road travel time. |
In this example, if you only look at the Demurrage Last Free Date and gate out on June 12, there may be insufficient time for devanning and returning the empty container.
In Free Time management, it is important to calculate backwards not only from the CY gate-out deadline but also from delivery, devanning, and empty container return deadlines.
Concept of Free Time Extension
| Item to Confirm | Details | Practical Notes | Documents to Keep |
|---|---|---|---|
| Application Destination | Shipping line, NVOCC, or contract contact point | Terminals or CFS may not be authorized to decide extensions independently. | Application guidelines, contact person information |
| Timing of Application | In principle, before exceeding Free Time | Retroactive extensions after the Free Time has been exceeded may not be accepted. | Application email, sending date and time |
| Reason for Extension | Vessel, terminal, data reflection, inspection, force majeure, etc. | Explain not only the reason but also the impact on the deadline. | Chronology, notifications, screen captures, inspection records |
| Applicable Charge Type | Demurrage, Detention, Combined D&D, or Storage | Extension may apply to only one charge type. | Approval response, applicable conditions |
| Coverage Scope | Specific B/L, container, port, or period | Extension may not automatically apply to all containers under the same shipment. | List of applicable numbers |
| Extension Days | Additional Free Days or new Last Free Date | Confirm specific dates rather than a vague "several days extension." | Approval email, updated screens |
| Impact on Charges | Exemption, reduction, or change of charge start date | Extension of Free Time does not necessarily mean fee exemption. | Billing response, credit notes, etc. |
Even when applying for a Free Time extension, arrangements should proceed on the assumption that the standard or existing individual conditions apply until approval is obtained.
While awaiting the extension response, continue to arrange for prompt gate-out, delivery, devanning, and container return.
Situations Where Extensions Are More or Less Likely to Be Considered
| Situation | Main Details | Verification Materials | Notes |
|---|---|---|---|
| Delayed Information Update on Carrier Side | D/O response or cargo release information is not reflected at the operational site | Processing completion notices, screens, inquiry records | Separate the timing of carrier processing and site reflection. |
| Terminal or Depot Restrictions | Gate closures, inability to make return reservations, change of designated location | Business announcements, reservation screens, change notifications | Records confirming alternative measures are also necessary. |
| Vessel or Inland Transport Delays | Vessel delays, domestic feeder or truck transfer delays | Vessel movement reports, transfer schedules, carrier notifications | Reconfirm origin point and start date of Free Time. |
| Force Majeure-Type Inspections or Regulations | Extended inspections, administrative restrictions on cargo release, etc. | Inspection notices, government instructions, customs records | The mere presence of inspections does not automatically justify an extension. |
| Importer’s Document Delays | Customs clearance documents, Original B/L or payment delays | Chronological records of requests, submissions, and payments | May be less likely to result in an extension as it is regarded as an importer-side issue. |
| Delivery Destination Circumstances | Insufficient receiving capacity, full warehouse, holidays | Delivery reservations, acceptance responses | May be classified as circumstances attributable to the importer or delivery destination. |
| Simple Arrangement Oversights | Reservation omissions, delayed dispatch, missed return location confirmation | Reservation histories, dispatch records | Such reasons are less likely to be accepted for extension or exemption. |
Key Documents and Verification Materials
| Document | Details to Confirm | Main Purpose |
|---|---|---|
| Arrival Notice | Vessel, ETA, B/L, container, delivery location, charges, and Free Time | To confirm the basic information of the case. |
| B/L・Sea Waybill | Cargo, parties involved, carriage terms, and container information | To identify the relevant shipment and cargo. |
| Booking・Quotation・Service Contract | Standard or specific Free Time and Combined conditions | To verify the agreed conditions for the case. |
| Shipping Line・NVOCC Tariff | Free Days, calculation start date, holidays, daily rate, and tiered charges | To confirm standard terms and additional charges. |
| Individual Free Time Screen | Last Free Date by container | To cross-check general tariff with specific terms. |
| Import Permit | Import Permit date and customs clearance completion | To confirm the timeline of customs procedures. |
| D/O・D/O-less Information | Carrier’s cargo release status | To check the impact on possible delivery dates. |
| CY Gate-Out EIR | Actual container gate-out date and time | To confirm the end of Demurrage and start of Detention. |
| Empty Container Return EIR | Return date, time, location, and condition | To confirm the end of the Detention period. |
| CFS Cargo Release Records | Date cargo became available for pickup and actual release date | To verify the CFS storage fee period. |
| Booking and Truck Dispatch Records | Delivery booking, return booking, vehicles, and change history | To confirm causes of delays and efforts to avoid them. |
| Extension Approval Records | Subject cargo, extension days, charge items, and new deadlines | Used for cross-checking billing details. |
Standard Five Classifications of Freight Forwarders and Their Involvement in Free Time Management
The following five classifications are not officially established by law or by the industry as a whole. They serve as an analytical framework in this series to organize the scope of freight forwarders’ involvement.
| Standard Five Classifications | Main Role in Free Time Management | Typical Scope of Involvement | Typically Not Involved In | Practical Notes |
|---|---|---|---|---|
| Simple Intermediary | Relays Free Time, Last Free Date, and stakeholder responses | Communicating information, forwarding documents, directing inquiries | Final decisions on Free Time extensions, fee waivers, or cost responsibility | Differentiates standard terms, individual terms, and unconfirmed information. |
| Cargo Transportation Service Provider | Arranges CY/CFS gate-out and inland delivery within Free Time | Booking gate-out, dispatching vehicles, routing, and delivery coordination | Setting or approving Free Time extensions by shipping lines | Secures vehicles by calculating backward from the Last Free Date. |
| NVOCC / House B/L Issuer | Manages House-side Free Time/charges and Master-side conditions | House B/L, customer terms, import-related charges, and inquiries to Master | Final decisions by Master Carrier tariffs or terminal operators | Clearly distinguishes between House-side and Master-side Free Time differences. |
| Door-to-Door Single Contractor | Integrally manages customs clearance, gate-out, delivery, devanning, and return deadlines | Overall process scheduling, stakeholder coordination, and record management | Authorities unique to customs, shipping lines, CFS, or delivery destinations | Even under a single contract, separates responsible parties by deadline stages. |
| Agent / Coordinator for Specific Operations | Conducts Free Time inquiries, extension requests, gate-out and return bookings | Authorized inquiries, applications, bookings, and status reporting | Cost approvals, waiver agreements, or contract changes without delegation | Distinguishes between authority to request extensions and authority to approve extensions. |
Contracting Carrier and Actual Carrier refer to legal or contractual positions under transport agreements and do not replace the standard five classifications presented in this article.
Operational tasks such as document verification, storage, inspection, vanning, devanning, gate-out bookings, return bookings, and drayage are different from the freight forwarder’s involvement types and do not constitute a sixth classification to be added to the standard five classifications.
Cases Commonly Problematic in Practice
| Case | Main Cause | Reference Documents | Key Points for Judgment | Initial Actions |
|---|---|---|---|---|
| Arrival Notice Free Time differs from date shown on individual screen | Differences in individual contracts, display updates, or timing of notification | Arrival Notice, contract, individual screen | Confirm the official terms applicable to the relevant container. | Inquire in writing with the shipping line or NVOCC. |
| Uncertainty whether to sum Demurrage and Detention Free Times | Misunderstanding between separate and combined calculation methods | Service Contract, Tariff, Booking | Confirm if the periods are separate or combined. | List start points and end conditions. |
| Unable to pick up cargo by Last Free Date despite Import Permit obtained | Incomplete D/O, site updates, reservation, or vehicle issues | Import Permit, D/O, pick-up inquiries, reservation | Identify pending processes after customs clearance. | Arrange cargo pick-up and request extension simultaneously. |
| CY gate-out completed, but empty container return deadline is very short | Short Detention Free Time or combined period already consumed | CY Gate-Out EIR, contract, return conditions | Check remaining days and time required for delivery and devanning. | Bring forward delivery scheduling and return reservations. |
| Unclear start date for CFS cargo storage charges | Discrepancies in recognizing CFS in-gate date, devanning date, or date when cargo becomes available for release | CFS tariff, in-gate and release information | Confirm the actual date when cargo became available for release. | Inquire with CFS or NVOCC about the basis for charge calculation. |
| Calculated excluding weekends/holidays but charges were still billed | Confusion over Calendar Days, Working Days, or post-Free Time calculation | Tariff, invoice, date list | Differ between holiday handling during Free Time and after it expires. | Recalculate days and follow up with inquiry. |
| Free Time extension was verbally approved but was still invoiced | No formal approval or system update | Email, call records, invoice | Verify the relevant charge items, days, and containers. | Request written approval and check system update status. |
| Standard Dry conditions applied to reefer or dangerous goods | Failure to confirm container type or cargo conditions | B/L, container information, tariff | Confirm applicable classification and whether Free Time applies. | Recalculate schedule and charges under special conditions. |
Example 1: Confusing Demurrage Free Time with Detention Free Time
For imported dry containers, suppose you were informed that the Free Time is 8 days, but this period applies only to demurrage, and a separate period is set for detention.
If the person in charge mistakenly assumes that the 8 days can also be used for returning empty containers after CY gate-out, there is a risk of incorrect return scheduling.
In this case, it is advisable to list the Demurrage Start Date and Last Free Date and the Detention Start Date and Last Free Date separately.
After CY gate-out, planning for delivery, devanning, reservation for return, and final empty container return should be calculated backward from the detention deadline.
Example 2: When Remaining Days After CY Gate-Out Are Insufficient Under Combined D&D
Assume that a Combined D&D Free Time of 10 days is set from unloading to empty container return, and the full container takes 8 days to be gate-out from the CY.
In this case, the remaining time available for delivery, devanning, and empty container return after gate-out is simply calculated as 2 days.
If one mistakenly assumes that a separate Detention Free Time starts anew, there is a risk of exceeding the return deadline.
Under Combined terms, it is important to finalize acceptance by the delivery destination, work time, and return reservation before CY gate-out.
Example 3: When the CFS Gate-Out Date and Storage Charge Start Date Do Not Match
Assume that imported LCL cargo is delivered to the CFS on Monday, devanning and sorting are completed on Wednesday, and the cargo becomes available for gate-out on Thursday.
The Last Free Date for CFS storage charges will vary depending on whether the free time is calculated from the CFS delivery date, the devanning completion date, or the available gate-out date.
The freight forwarder should not rely solely on the Arrival Notice but should verify the CFS or NVOCC tariff and the available gate-out record for the cargo concerned.
If charges are incurred, the date when the cargo was actually available for pickup and the contractually agreed storage charge start date should be separately verified.
Example 4: Misunderstanding the Charges Covered by Free Time Extension
Suppose the shipping line responds by offering to extend the Free Time by 3 days, but the extension applies only to Demurrage, while Detention remains under the standard conditions.
If the responsible person assumes that the empty container return deadline is also extended by 3 days, Detention charges could be incurred.
When approving an extension, confirm the relevant B/L, container number, charge type, additional days, and the new Last Free Date.
Do not assume based solely on the phrase "Free Time extension"; verify in writing whether it applies to Demurrage, Detention, Combined D&D, or Storage.
Decision Checklist
| Situation for Confirmation | Party to Confirm With | Items to Confirm | Actions If Issues Arise |
|---|---|---|---|
| Upon Receipt of Arrival Notice | shipping line, NVOCC | B/L, container, delivery location, and Free Time | Inquire about the relevant charge items and days. |
| When Confirming Contract Terms | sales representative, shipping line, NVOCC | standard, individual, combined, and extension terms | Retain written documents or system display records. |
| When Confirming Start Date | shipping line, terminal, CFS | cargo unloading date, CY gate-out, CFS delivery or release date | Verify the official starting point for the applicable process. |
| When Confirming Last Free Date | shipping line, NVOCC, CFS | final free day for the relevant container or cargo | Cross-check general tariff with any individual terms. |
| When Confirming Customs Clearance Schedule | customs broker, importer | Import Permit, inspections, and expectations under other laws | Share potential delays or excess days early. |
| During Delivery Arrangement | terminal, CFS, drayage company, delivery company | delivery availability, reservations, vehicles, and reception hours | Secure alternative dates within the deadline. |
| When Planning Delivery | importer, delivery destination, delivery company | receipt date/time, devanning duration, and handling conditions | Adjust delivery date or work arrangements as needed. |
| When Planning Empty Container Return | shipping line, return depot, drayage company | return location, reservation, reception, and Detention deadline | Ensure a return slot before the deadline. |
| When Applying for Extension | shipping line, NVOCC | subject, reason, applicable charges, number of days, and new deadline | Obtain approval in writing. |
| When Additional Charges Occur | billing party, involved parties, importer | billing period, number of days, rates, causes, and party responsible | Verify chronologically and based on evidence. |
Common Misconceptions
| Misconception | Actual Concept | Practical Notes |
|---|---|---|
| There is only one type of Free Time | There are Demurrage, Detention, Combined D&D, CFS storage, etc. | Confirm which charge items apply first. |
| If you know the number of Free Time days, you know the deadline | Start date, holidays, and end conditions are also required. | Check the Last Free Date. |
| Import Permit issuance alone prevents exceeding Free Time | D/O, on-site updates, appointments, vehicles, and delivery destination are also required. | Confirm the procedures after the Import Permit. |
| Free Time management ends once container is gate-out from CY | After gate-out, Detention or Combined D&D management continues. | Manage until empty container is returned. |
| New Free Time period starts after gate-out even with Combined D&D | Usually, one period covers from discharge to return. | Check remaining days. |
| Saturdays, Sundays, and holidays are always excluded from the count | Calendar Days, Working Days, and post-excess treatment vary by terms. | Check the tariff. |
| Free Time extension will always be approved if requested | Extension requires approval by the carrier or contracting parties. | Do not halt arrangements assuming approval. |
| Verbal agreement on extension is sufficient | Written confirmation of charge item, container, days, and deadline is required. | Keep approval emails. |
| LCL cargo does not have Free Time | The free storage period at CFS or warehouse is the issue. | Check earliest pickup date and storage fee start date. |
| Reefer, hazardous, and special containers have the same terms as Dry | Free Time, charges, or handling terms may differ. | Confirm container and cargo classification. |
| Booking before the Last Free Date prevents charges | Usually actual cargo removal or container return completion is required. | Check EIR or gate records. |
| Days stated on the invoice need no further verification | Verify Free Time, actual dates, holidays, and tariff tiers for errors. | Recalculate following the invoice verification procedure article. |
Situations Requiring Confirmation with Experts or Relevant Parties
| Situation | Main Contacts for Confirmation | Reason for Confirmation | Documents to Prepare |
|---|---|---|---|
| Individual Free Time or Combined Conditions are unclear | Shipping line, NVOCC, Contract Manager | To confirm the official deadline for the case | Booking, Quotation, Contract, Arrival Notice |
| Last Free Date differs among documents | Shipping line, NVOCC, Terminal | To verify which date applies for billing purposes | Screenshots, Tariff, Arrival Notice, Contract |
| CFS storage charge start conditions are unclear | CFS, Warehouse, NVOCC | To confirm the date cargo can be released and billing start date | CFS Rate Sheet, In-gate and Delivery Records, Invoices |
| Requesting Free Time extension or waiver | Shipping line, NVOCC, Contract Manager | To verify applicable charges, extension days, and approval conditions | Delay Reason, Chronology, Booking Screen, Notifications |
| High Demurrage or Detention charges have occurred | Bill issuer, Contract Manager, Maritime Lawyer | To review billing basis, contract, and cost responsibilities | Contract, Tariff, EIR, Invoice, Chronology |
| Cargo incident and additional charges occur simultaneously | Cargo Insurance Company, Insurance Agent, Surveyor, Carrier | To separately handle cargo damage and delay/storage costs | Insurance Policy, Photos, Incident Report, Invoice, EIR |
Summary
Free Time for import containers and LCL cargo refers to the specified period during which no additional charges such as Demurrage, Detention, CFS storage fees, or warehouse storage fees are incurred for the import cargo or import container.
- Free Time is not a single type; it is divided into Demurrage, Detention, Combined D&D, and CFS/warehouse storage categories.
- Confirm not only the number of Free Time days but also the Start Date, Last Free Date, ending conditions, and treatment of holidays.
- For import FCL cargo, separate confirmation is needed for the CY gate-out deadline and empty container return deadline.
- Combined D&D manages the entire period from vessel discharge to empty container return as a single timeframe.
- For import LCL cargo, confirm the CFS in-gate, devanning, sorting, earliest release date, and commencement of CFS storage fees.
- General tariffs and individual Free Time provisions for specific shipments may differ.
- The Last Free Date should not be finalized based solely on internal calculations but verified against official information for the relevant container or cargo.
- The handling of weekends and public holidays varies during Free Time, after Free Time expires, and depending on the carrier and contract terms.
- Free Time extensions should be confirmed in writing, specifying applicable charges, reference numbers, extension periods, and new deadlines.
- Work backward not only from CY gate-out dates but also from delivery, devanning, and empty container return deadlines.
- Reefers, dangerous goods, and special containers may have conditions different from those of dry containers, which should be confirmed.
- Freight forwarders should treat Free Time not merely as a number of days but as a standard deadline framework for managing customs clearance, cargo release, gate-out, inland delivery, final delivery, and container return.
