Free Time (Demurrage)

Free Time (Demurrage) refers to the period during which the carrier allows the cargo owner to use the container yard or terminal at the destination port free of charge. It typically includes free storage time and free container time. Free storage time mainly applies to the storage of containers in the terminal yard, and exceeding this period incurs storage fees; free container time applies to the use of containers after they leave the terminal, and exceeding this period incurs container detention fees. The two are often collectively referred to as 'Free Time', but in practice they must be distinguished. This term is commonly used in scenarios such as importers picking up goods, devanning, and returning containers at the destination port. Notes: Different shipping lines, ports, and container types (20ft/40ft) have different free time days, usually 3-7 days; if goods require inspection, commodity inspection, or transshipment, an extension of free time should be applied for in advance, otherwise high fees may be incurred. Unlike 'Demurrage', which specifically refers to penalties after exceeding the free period, free time is the free period. Foreign trade practitioners should confirm the free time terms when booking and specify them in the bill of lading or contract to avoid additional costs.