Why it happens:
Free time is often consumed by delays that occur after the vessel arrives but before the container can be picked up. These delays are common and usually outside the shipper’s direct control.
What it is:
Free time is the number of days a container is allowed to stay in the terminal without incurring demurrage charges. It is granted by the carrier and applies only for a limited period.
How it works:
In many ports, free time starts when the container is discharged from the vessel, not when it becomes ready for pickup. From that moment, the clock runs continuously.
Several steps must happen before a container can be collected:
- customs clearance must be completed;
- the carrier must issue a release;
- the container must be physically accessible in the terminal;
- a truck appointment must be secured.
If any of these steps are delayed, free time continues to expire even though the container cannot yet be picked up. During congestion, inspections, or labor shortages, these delays can consume most or all the free time windows.
Examples:
- A container is discharged, but customs inspection takes several days, using up most of the free time.
- The shipment is cleared, but no truck appointments are available before free time expires.
- Carrier release is delayed due to documentation or unpaid charges, while demurrage continues to accrue.
Facts:
- Demurrage often starts while shippers believe the shipment is still “in process.”
- In busy ports, it is common for a large portion of free time to be lost before pickup is even possible.
- Free time is affected more by post-arrival coordination than by transit time at sea.
Misinterpretations:
- Free time does not typically begin when the container is ready for pickup. In most ports, it starts when the container is discharged from the vessel or made available in the terminal system, regardless of whether customs clearance, carrier release, or trucking arrangements are complete.
- Delays caused by ports, terminals, or customs authorities do not usually result in automatic free time extensions. Unless an extension is formally granted by the carrier or terminal, demurrage continues to accrue even when the delay is outside the shipper’s control.
Who solves it:
Skypace system tracks discharge timing, free time limits, clearance status, carrier release, and pickup readiness as separate steps. By showing where time is being consumed before pickup is possible, shippers can see why free time is expiring and where earlier action may reduce exposure to demurrage.
