What Is a Last Free Day (LFD)?

Last free day, defined

The last free day (LFD) is the final day an import container can stay on the marine terminal without demurrage charges. Each import container gets a set number of free days after it is discharged from the vessel and made available. Once the LFD passes, demurrage is charged for every additional day the container remains on terminal.

In LFD shipping terms, the clock is about space on the terminal. The LFD does not tell you when the steamship line will start charging for its container once it leaves the terminal. That is a separate free-time period, and missing it leads to per diem, also called detention.

This guide explains how the last free day is calculated, where to find it, how holds affect it, and what to do when a container is about to go past it.

The dates around the last free day

An import container has several dates attached to it. These are the ones that drive charges.

How the last free day is calculated

No single national rule sets the LFD. It comes from the terminal's tariff and the ocean carrier's terms, which vary by port, terminal and contract. These are the variables:

• Start point. Free time usually starts when the container is discharged and available. Some terminals count from the first full day after discharge.
• Number of free days. Each terminal and ocean carrier publishes its free time. Large importers sometimes negotiate extra free days in their service contracts.
• Calendar or working days. Some terminals count weekends and holidays as free days, others exclude them. A Friday discharge can lose two days before most warehouses open.
• Holds. Whether a customs, freight or terminal hold pauses the clock depends on the terminal and carrier. Many do not pause it.
• Extensions. Terminals and carriers sometimes extend free time during congestion, closures or system outages. Extensions are discretionary.

Example: calculating a last free day

Example with hypothetical terms: a terminal gives four free days, counted as calendar days starting the day after discharge. A container is discharged on Wednesday. Free days are Thursday, Friday, Saturday and Sunday, so the LFD is Sunday. If pickup happens Monday, one day of demurrage applies.

Now change one term: the same terminal excludes weekends. Free days become Thursday, Friday, Monday and Tuesday, and the LFD moves to Tuesday. The same container, the same terminal policy structure, and a two-day difference in when charges start. Always read the actual terms instead of assuming.

Last, consider the receiver. If the warehouse can only take delivery the following Thursday, the container will either sit two or four days past the LFD at the terminal, or be pulled into container storage before the LFD and delivered later.

Where to find your container's last free day

• The terminal's container lookup. Most terminals publish availability, holds and the LFD by container number.
• The arrival notice. The ocean carrier or NVOCC sends an arrival notice that often lists free time terms.
• Your drayage carrier. A good carrier checks the LFD with availability and holds before booking an appointment.
• Your forwarder or customs broker. They often track LFDs across all of an importer's containers.
• The demurrage invoice. Under 46 CFR 541, a demurrage invoice must show the free time allowed and the start and end dates of free time, so you can check the LFD after the fact.

How holds interact with the last free day

A container on hold cannot leave the terminal, but the free time clock often keeps running. Common holds are customs (CBP has not released the cargo or wants an exam), freight (ocean freight or charges are unpaid) and terminal holds (fees owed or the container is flagged for inspection).

The Federal Maritime Commission's interpretive rule at 46 CFR 545.5 says demurrage and detention should work as incentives to keep cargo moving, and lists cargo availability and government inspections as factors in judging whether charges are reasonable. That gives importers grounds to question demurrage charged for days a container could not be retrieved, though it does not automatically cancel the charge.

The practical defense is to clear holds early. File the customs entry before arrival through your customs broker, pay freight before discharge, and check holds the day the vessel arrives. If customs release will not come in time, an in-bond move to a bonded warehouse by bonded drayage can get the container off the terminal.

How to avoid missing the last free day

1. 01
   Book drayage when the vessel sails

   Give the drayage carrier container numbers and delivery details before arrival so appointments can be booked as soon as the container is available.

2. 02
   Clear holds before discharge

   Get the customs entry filed and freight paid early. Holds are the most common reason a pickup misses the LFD.

3. 03
   Aim for a day before the LFD

   Planning the pickup for the LFD itself leaves no room for a missed appointment, a gate problem or a truck delay.

4. 04
   Match deliveries to dock capacity

   If several containers arrive together, decide on day one which go straight to the warehouse and which need a pre-pull.

5. 05
   Have a fallback

   Know where a container can go if your dock fills up: container yard storage, a container freight station, transloading or a bonded warehouse.

What to do when you will miss the last free day

Common last free day mistakes

• Confusing the LFD with the per diem deadline. Picking up on the LFD stops demurrage but starts the per diem clock. See demurrage and detention.
• Assuming weekends do not count. Many terminals count calendar days.
• Relying on the ETA. Vessels arrive early and late. The LFD is set from actual discharge.
• Booking drayage too late. Appointment slots near the LFD are the first to go in busy weeks, so line up a carrier for port drayage early.
• Ignoring the receiver. A pickup before the LFD only helps if the warehouse can take the container. Confirm dock appointments at the same time you book the truck.
• Not checking the invoice. Compare the free time dates on any demurrage invoice with your own records. You generally have 30 days to dispute under FMC rules.

Is there a last free day for exports?

Exports work on different dates. Instead of an LFD, the terminal sets an earliest return date (the first day it will accept a loaded export container for a given vessel) and a cargo cutoff (the last time it will accept it). Arriving early can mean storing the loaded container off terminal, and missing the cutoff can mean the container rolls to the next sailing.

The FMC billing rule requires export detention invoices to show the earliest return date, the export counterpart to the import availability date.

Frequently asked questions