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Free days and demurrage: how to avoid extra charges on your container

What the free days granted by the shipping line are, how demurrage, storage and truck waiting time differ, and what to do to avoid extra charges on imports and exports.

Published November 9, 20263 min read

Many of the unexpected costs of an import don’t come from the freight itself, but from time: a container that stays longer than planned at the port, at the warehouse or waiting to be returned. These are the concepts worth having clear, and what you can do to avoid the charges.

What free days are

Free days are the time the shipping line lets you use its container at no extra cost. They are set in the shipping line’s terms or in your freight contract, and they can vary by shipping line, equipment type and customer.

The way they are counted also varies. Some shipping lines count a single period, from the moment the container is discharged from the vessel until the empty is returned; others count the time the container spends inside the terminal separately from the time it spends outside. Before the vessel arrives, confirm with your shipping line or freight forwarder how many days you have and when they start counting.

Four charges that are often confused

  • Demurrage and detention. Charged by the shipping line for each day the container is used beyond the free days, and they usually increase the longer it goes. Strictly speaking, demurrage applies while the container is inside the terminal and detention once it is outside, although many lines combine both. In Guatemala they are commonly known as demoras.
  • Storage. Charged by the port terminal for the time the container stays at the port after its free period. It is a separate charge from demurrage and is billed separately.
  • Truck waiting time. Charged by the carrier when the truck waits longer than agreed at loading or unloading (known locally as estadía). Ask about the terms when you request a quote.
  • Rescheduling or dry-run charges. These can apply when the truck arrives and the container has not been released, or the warehouse cannot receive it.

How to avoid charges on imports

  1. Know your free days before arrival and write them into your receiving plan.
  2. Get ahead on the release. Have the paperwork, payments and customs declaration ready when the vessel arrives.
  3. Schedule the pickup as soon as the container is released. Every day at the terminal uses up free days and can generate storage charges.
  4. Prepare for unloading. Confirmed staff, forklifts and receiving hours reduce the time the truck spends at your warehouse.
  5. Return the empty without delay, to the yard designated by the shipping line.

How to avoid charges on exports

  1. Pick up the empty close to the loading date, not weeks ahead: the empty container also uses up free days.
  2. Coordinate loading at your plant with the truck’s arrival.
  3. Meet the vessel’s cargo cutoff. A container that doesn’t get in on time may be rolled to the next vessel.

At AXENIS

Booking the terminal appointment and returning the empty are part of our drayage service. Share the free days your shipping line grants you when you request your quote and we schedule every leg of the cycle with that deadline in mind.

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