What is the Last Free Day in Shipping?
The Last Free Day (LFD) is the final day a container can be stored at a port terminal, rail ramp, or warehouse without incurring storage charges, such as demurrage or rail storage fees. After this date, daily fees begin to apply until the container is picked up or moved.
The LFD is determined based on the container’s availability for pickup, not its arrival date, and typically includes a limited number of “free” days granted by the terminal or carrier.
Why It Matters
Missing the LFD can result in costly storage charges, supply chain delays, and strained relationships with carriers or terminals. Importers, brokers, and drayage providers closely monitor the Last Free Day to avoid these disruptions.
Typical Free Time by Mode
- Ports (demurrage): 4–5 free days after container availability
- Rail ramps: 1–2 free days depending on the location
- Warehouse storage: Varies by contract
Example in Practice
A container arrives at the Port of Newark on April 1 and becomes available for pickup on April 3. With 5 free days, the Last Free Day is April 8. If it’s not picked up by then, demurrage charges begin on April 9.
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