A quotation stating “7 days free time” does not tell an importer or exporter which charge is waived, when the clock starts, or when it ends. Unless demurrage, detention, storage, day-count convention and equipment scope are separated, procurement may believe the cost is controlled while operations still incur daily charges. This guide provides a container-level method to verify free-time terms before confirming a booking.

QUICK FACTS

Never approve one number alone

Free time must be tied to a charge, direction, location, equipment, effective basis and start/end events.

Separate the clocks

DEM, DET and Storage may be separate or merged; D&D free time does not automatically waive Storage.

Confirm the day type

Calendar days include consecutive days; working days exclude non-working days under local rules.

Lock documentary evidence

The final term should appear in a quotation, booking confirmation, service contract or traceable written approval.

SCOPE OF APPLICATION

This guide applies to import and export FCL ocean shipments, including dry, reefer, special equipment and NOR where allowed by the tariff. It addresses carrier equipment use and time at ports, terminals, ICDs and depots. It does not replace the specific tariff of a carrier, terminal, depot or service contract.

Limitation: LCL, breakbulk, charter, shipper-owned containers and CFS storage may follow different mechanisms.

KEY TERMS

Term	Operational meaning	What to verify
Free Time	The agreed period during which specified D&D charges are not payable.	Whether it covers DEM, DET, merged D&D and/or Storage.
Demurrage – DEM	Charge when the carrier’s container remains inside a port, terminal or depot beyond free time.	Start event and the gate-out/load-on-board event that stops the clock.
Detention – DET	Charge when carrier equipment remains outside the port/terminal/depot beyond free time.	Gate-out/pick-up event and empty return/full gate-in event.
Combined D&D	Demurrage and detention merged into one continuous period.	Total days and exact start/end events.
Storage	Ground-use charge assessed by a terminal, ICD, depot, warehouse or carrier.	Who collects it and whether it is included or separate.
Last Free Day – LFD	The final day within the free period for one specific clock.	Do not use one LFD for separate DEM, DET and Storage clocks.
Calendar / Working Day	Consecutive days / eligible working days under local rules.	Treatment of weekends, holidays and terminal closures.

COMMERCIAL MECHANISM

Free Time is a commercial condition linked to equipment and infrastructure use. A shipment may simultaneously be subject to a quotation, booking confirmation, service contract, SPOT terms and an incorporated tariff. Do not assume that one document always prevails; identify the governing document, effective version and accepted terms for the specific booking.

Control principle: one Free Time record per container: charge code + direction + location + equipment + counting basis + start event + end event + free days + rate slabs + governing document.

CMA CGM states that merged D&D does not automatically include Storage or reefer services unless the country tariff says so. By contrast, Maersk Vietnam’s current import tariff defines Demurrage as including terminal storage costs. This difference demonstrates why the carrier-, location- and shipment-specific tariff must be checked instead of relying on a generic definition.

12-FIELD VERIFICATION MATRIX

Field	Question	Preferred evidence	Risk if omitted
Direction	Import or export?	Quotation/booking	Wrong operational events.
Mechanism	Separate DEM/DET or merged D&D?	Tariff/booking terms	Wrong day allocation.
Free days	How many for each charge?	Booking confirmation	One number applied to all charges.
Day type	Calendar or working days? Is the start event Day 1, or does Day 1 begin on the next day? Are partial days charged?	Tariff footnote	One-day LFD error or incorrect treatment of weekends and holidays.
Start event	Discharge, availability, release, gate-out or empty pick-up?	Definition	Incorrect LFD.
End event	Full gate-out, empty return, full gate-in or load-on-board?	Definition	No clear clock-stopping action.
Location	Port, terminal, ICD, rail ramp or depot?	Routing/booking	Wrong local tariff.
Equipment	20/40/45, dry/reefer/special/NOR?	Booking	Special equipment terms missed.
Storage	Included or separate; who bills it?	Carrier/terminal tariff	Unbudgeted ground rent.
Rate slabs	What charges apply after free time?	Effective tariff	No delay-cost forecast.
Effective basis	PCD, booking date, discharge or another date?	Validity/PCD	Obsolete tariff used.
Exceptions	Are holds, terminal/depot closures, rollovers or vessel changes excluded, extended or eligible for relief?	Terms/written approval	Disputes during disruption.

IMPORT VERSUS EXPORT FREE TIME

Direction	Clock	Typical period	Control action
Import – Demurrage	Full container inside terminal	Discharge/availability/release to full gate-out	Prepare D/O, customs, permits and trucking before LFD.
Import – Detention	Container outside terminal	Full gate-out to empty return	Plan unloading and empty-return depot.
Import – Combined D&D	One continuous clock	Discharge to empty return	Control pickup, unloading and return as one cycle.
Export – Detention	Empty equipment outside depot	Empty pick-up to full gate-in	Do not collect equipment before cargo is ready.
Export – Demurrage	Full container inside terminal	Full gate-in to load-on-board	Control CY cut-off, rollover and ETD changes.
Export – Combined D&D	One continuous clock	Empty pick-up to load-on-board	Work backwards from cut-off and ETD.

DOCUMENTS AND DATA TO CHECK

Document/data	Issuer/owner	Use	Fields to reconcile
Quotation	Carrier/NVOCC/forwarder	Supplier selection	Scope, validity, days, day type, exclusions.
Booking Confirmation	Carrier/NVOCC	After booking	Vessel/voyage, equipment, terminal, SPOT/contract terms.
Service Contract	Carrier and customer	Contract rate shipments	Named account, route, commodity, effective period.
D&D Tariff	Carrier	Standard reference	Country, direction, location, equipment, effective date.
Terminal/Depot Tariff	Terminal/ICD/depot	Storage review	Storage days, counting basis, pass-through charges.
Tracking Events	Carrier/terminal systems	Actual calculation	Discharge, availability, gate-out, empty return, load-on-board.
Written exception approval	Carrier/forwarder	Extensions/waivers	Booking/container, extra days, purchase price and conditions.

SEVEN-STEP PRE-BOOKING REVIEW

Define the shipment scope

Record POL/POD, terminal, direction, equipment, commodity, expected ETD/ETA and haulage plan.

Separate charge codes

Require DEM, DET/merged D&D, Storage and reefer services to be shown separately.

Confirm day counting

Confirm calendar or working days, whether the start event is Day 1 or Day 0, and whether a partial day is charged in full.

Confirm start/end events

Write the exact event that starts and stops every clock.

Match the effective tariff

Verify country, location, equipment, effective date, PCD and governing rate condition.

Calculate test LFDs

Model a normal schedule and a weekend/holiday/rollover scenario, with a separate LFD per charge.

Archive acceptance evidence

Retain the quotation, booking confirmation, tariff/version and approval emails with the booking/container reference; obtain written confirmation of precedence where documents differ.

CALCULATING LAST FREE DAY

Do not calculate LFD by mechanically adding days to ETA. First identify the correct start event, day type and Day 1/Day 0 rule in the applicable tariff.

If the start event is Day 1: LFD is the Nth eligible day counted from the start event; for calendar days, this equals start date + (N − 1) days.

If the following day is Day 1: LFD is the Nth eligible day after the start event; for calendar days, this equals start date + N days.

For working days: count only days treated as working days under the tariff; do not derive the result by ordinary calendar-day addition.

The first chargeable day is usually the next chargeable day after LFD under the same day-count basis. Some tariffs charge every day or part thereof in full, so event timestamps, cut-offs and partial-day rules must also be checked.

Operational example: where import Demurrage “commences on and includes the day of discharge,” discharge is Day 1; where Detention starts “on and includes full gate-out,” gate-out may also be Day 1. Never transfer the DEM LFD to DET where the clocks are separate.

HOW TO READ QUOTATION WORDING

Wording	Assessment	Missing information
“7 days free time”	Insufficient	Charge, day type, start/end, equipment and location.
“7 calendar days combined D&D, import dry”	Basic mechanism is clear	Start/end events, Storage, effective basis and rate slabs.
“DEM 5 days + DET 3 days”	Clocks are separated	Day 1, events, Storage and terminal/depot.
“As per carrier tariff”	Budget not locked	Carrier, tariff version/link, location and PCD.
“Special free time subject to approval”	Not yet effective	Approver, deadline, purchase price and written evidence.

RISKS AND COMMON ERRORS

Error	Cause	Impact	Control
Using ETA for every LFD	Start event not reviewed	Wrong deadline	Use actual carrier/terminal event.
Combining DEM, DET and Storage	Short quotation wording	Incomplete budget	Build a charge matrix.
Ignoring calendar days	Assuming business days	Weekend/holiday charges	Record day type.
Applying one term to all containers	Equipment/location not checked	Reefer/special exceptions	Track each container.
Relying only on public tariff	SPOT/contract not reviewed	Wrong governing term	Archive shipment-specific terms.
No written extension approval	Verbal confirmation	Weak dispute evidence	Obtain booking-referenced approval.
No update after rollover	Schedule change	Longer export D&D	Monitor ETD/cut-off and request confirmation.

OFFICIAL SOURCES AND LEGAL SCOPE

Source	Scope	Use
CMA CGM – General D&D Terms	Carrier terms	Definitions, events and calendar/working-day conventions.
Maersk Vietnam – Import / Export	Local information, effective until changed on the page	Check start/end events, calendar days, PCD, equipment, Storage treatment and SPOT terms.
Hapag-Lloyd – D&D Tariffs	Country tariff portal	Current tariff and additional free time.
FMC – U.S. D&D billing update	United States jurisdiction only	Invoice-content and issuance-deadline reference.

United States note: the 2025 court decision set aside only 46 C.F.R. 541.4; the remaining FMC billing requirements continue in effect. They are not universal rules for non-U.S. shipments.

FAQ

Does “7 free days” automatically cover both DEM and DET?

No. Verify whether the term is separate or merged D&D.

Does D&D free time include Storage?

Only when the tariff or quotation expressly says so.

Is ETA always the demurrage start date?

No. The governing term may use discharge, availability, release or another event.

Are weekends and holidays excluded?

Only under the applicable working-day convention; calendar days normally run consecutively.

Do SPOT bookings use the public standard tariff?

Not necessarily. Accepted SPOT or booking conditions may differ.

Can separate DEM and DET days be added together?

Not as one flexible pool unless the term expressly provides combined D&D.

When should extra free time be purchased?

Before booking or the carrier’s deadline, after modelling customs, unloading, delivery and empty return.

APPLICATION NOTE: Actual terms depend on the carrier/NVOCC, country, terminal/depot, direction, equipment, service contract, SPOT terms, PCD and actual events. Where documents differ, require written confirmation of which document governs the specific booking; do not assume that a quotation always overrides a tariff or vice versa.

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