LFDCharges & Tariffs

Last Free Day

Definition: The final calendar date before which a container must be picked up from the marine terminal (demurrage) or returned empty to the carrier (detention) without penalty.

Detailed Freight Guide & Operational Context

Last Free Day (LFD) is one of the most critical operational milestones in ocean container logistics. It marks the expiration of contractually allotted 'free time' granted by shipping lines and marine terminals for cargo pickup and container equipment return.

Two distinct LFD milestones apply to every import shipment: (1) Terminal Demurrage LFD, which is the deadline to dray the loaded container off the port terminal gate after vessel discharge, and (2) Equipment Detention LFD, which is the deadline to return the emptied container chassis back to the carrier's designated depot.

Missing the Last Free Day triggers punitive daily per-diem charges that escalate in progressive tiers (often $150 to $450+ per container per day). Port congestion, customs holds, lack of chassis, or closed appointment gates frequently cause unexpected LFD expirations.

How to Calculate LFD

Demurrage LFD = Vessel Discharge Date + Contracted Port Free Days (excluding exempt weekend/holiday days depending on terminal tariff).

Real-World Example in Practice

A 40ft container is discharged at Nhava Sheva on October 6th with 5 calendar days of port free time. Its Demurrage LFD is October 11th. If gate-out occurs on October 14th, 3 days of demurrage charges apply.

Frequently Asked Questions about LFD

What is Last Free Day (LFD) in container shipping?

LFD is the final calendar date you can hold a container at the port terminal or off-dock without incurring demurrage or detention charges from the carrier.

Who determines the Last Free Day?

The ocean carrier and the marine terminal operator determine the LFD based on the vessel discharge date and the free-time terms negotiated in your service contract.

What happens if a container passes its LFD?

Once LFD passes, daily demurrage or detention fees begin accruing immediately on a compounding staircase rate structure until the container is cleared.

Recommended Tool

Last Free Day & D&D Tracker

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Related Shipping Terms

Container Free Time

Free Time

Demurrage

Detention (Per Diem)

Detention

Container Drayage

Drayage

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