In international trade, a well-planned operation depends not only on choosing the right mode of transport or supplier but also on managing logistics timelines efficiently. Among the costs that most often generate questions and unexpected expenses are free time, detention, and demurrage. Understanding these concepts is essential to maintaining financial predictability and avoiding significant charges.

What Is Free Time?

Free time is the period granted by the shipping line or terminal during which the importer or exporter can carry out certain stages of the operation without additional charges. This may include removing the container from the terminal, returning the empty container, and stuffing or unstuffing the cargo.

This period varies according to the contract and prior negotiation. When the free time is exceeded, detention and demurrage fees begin to apply.

Detention is charged when the container remains outside the terminal beyond the allowed free time. This occurs when the cargo takes longer than expected to be stuffed by the exporter, or when the loaded container is not returned to the depot within the established timeframe. As the container is the property of the shipping line, any delay generates an operational cost that is passed on to the shipper in the form of this fee.

Demurrage, on the other hand, is applied when the cargo remains inside the terminal longer than the free time granted. This charge typically arises in situations such as delays in customs clearance, incomplete documentation, lack of pickup scheduling, or operational restrictions that hinder access to the terminal. Because it involves keeping the cargo in port storage areas, demurrage is often one of the highest costs in the operation.

Detention and demurrage can accumulate rapidly, reaching significant daily amounts. In addition, these fees do not depend only on the freight forwarder or customs broker. They involve shipping lines, terminals, regulatory agencies, and the importer’s own logistics organization.

Some essential practices help reduce risks, such as:

• Negotiating free time before shipping;
• Ensuring accurate and timely documentation;
• Monitoring cargo status in real time;
• Coordinating scheduling with terminals and carriers;
• Planning customs clearance in advance.

An integrated logistics management approach is the best way to avoid unexpected costs and ensure a smooth operation. Count on Modal Comex to oversee every stage of your shipment, mitigate risks, and provide the support needed for your cargo to move with safety and predictability.