Key Takeaways
- ✓What is last free day? LFD is the final date a container can sit at a terminal without triggering demurrage — after that date, charges of $150–$500/day per container begin immediately
- ✓LFD is calculated by adding the carrier's free day allowance (typically 4–7 days) to the vessel discharge date
- ✓Free time, LFD, and demurrage are three distinct concepts — understanding the difference prevents expensive billing surprises
- ✓Three independent LFD clocks run on every import container: line LFD, terminal LFD, and rail LFD — the earliest one controls when charges start
- ✓OSRA 2022 bars carriers from charging demurrage when a container is inaccessible for pickup due to terminal or carrier-caused delays
- ✓LFD extensions are available from most carriers — but only if requested before the expiration date
Definition
Last Free Day (LFD) is the final calendar day a shipping container can remain at a port terminal, rail ramp, or under an ocean carrier's custody without incurring demurrage or storage charges. LFD is determined by adding the carrier's free time allowance to the container's vessel discharge date. Once LFD expires, daily charges begin — ranging from $150 to $500 per container per day depending on the shipping line and port.
What Is Last Free Day (LFD)?
What is last free day? It's the single most important date in import container logistics. Every container discharged at a US port comes with a defined window of complimentary storage time — a period during which the carrier or terminal holds the container at no extra charge. LFD marks the end of that window. Pick up the container on or before LFD, and you pay nothing beyond your freight charges. Miss it by even one day, and demurrage charges start accruing automatically.
Last free day meaning varies slightly by context. When a carrier (shipping line) references LFD, they mean the expiration of their demurrage free time — the period the container can remain in the terminal under their custody without a storage fee. When a terminal operator references LFD, they mean their own independently calculated storage free time. These two dates are not the same, and failing to track both is one of the most common — and expensive — mistakes in import operations.
For a comprehensive operational guide to tracking LFD across all carriers and terminals, see The Ultimate Guide to Last Free Day Tracking.
Free Time vs. LFD vs. Demurrage: What's the Difference?
These three terms appear constantly in shipping documentation and invoices. Freight forwarders, importers, and logistics managers use them interchangeably — which causes real financial harm when invoices arrive.
| Term | What It Is | Example |
|---|---|---|
| Free Time | The number of calendar days the carrier or terminal allows the container to sit without charge | 4 free days |
| Last Free Day (LFD) | The specific calendar date on which free time expires — the last day you can retrieve the container at no extra cost | March 7, 2026 |
| Demurrage | The per-day charge assessed after LFD expires while the container remains at the terminal — a penalty for occupying terminal space beyond the free period | $225/day starting March 8 |
| Detention | A separate charge assessed after you've picked up the container from the terminal but haven't returned the empty equipment to the carrier within the allowed time | $150/day if empty not returned within 5 days |
| Per Diem | A daily equipment use fee charged by the carrier — often used interchangeably with detention, though some carriers apply it differently | $100/day after free return period |
The practical implication: demurrage is about where the container is (at the terminal, after LFD). Detention is about where the equipment is (in your possession or at your warehouse, after the return free period). Both can run simultaneously in some scenarios. For the purposes of LFD tracking, demurrage is the primary concern.
How Is Last Free Day Calculated?
LFD calculation follows a defined formula, but several variables make it less straightforward than it appears.
The Basic Formula
LFD = Vessel Discharge Date + Free Days Allowed
The discharge date is when the container is physically unloaded from the vessel onto the terminal. Most carriers treat the discharge date as Day 0 (not counted in the free day tally) — so a container discharged on Monday with 4 free days has an LFD of Friday. Some carriers count the discharge date as Day 1, shortening the effective window by one day. Always verify the counting methodology in your carrier's tariff.
Worked Calendar Example
Container MAEU4581923 arrives at APM Terminals, Port of Los Angeles. Carrier: Maersk. Free days: 4 (calendar days, discharge date excluded).
| Day | Date | Status | Charge |
|---|---|---|---|
| Discharge (Day 0) | Mon, Mar 3 | Container unloaded from vessel | No charge |
| Free Day 1 | Tue, Mar 4 | Free time running | No charge |
| Free Day 2 | Wed, Mar 5 | Free time running | No charge |
| Free Day 3 | Thu, Mar 6 | Free time running | No charge |
| Free Day 4 — LFD | Fri, Mar 7 | Last Free Day — container must leave terminal by end of gate hours | No charge if picked up today |
| Demurrage Day 1 | Sat, Mar 8 | Free time expired | $225/day (Maersk Tier 1) |
| Demurrage Day 2 | Sun, Mar 9 | Accruing | $225/day — total $450 |
| Demurrage Days 5–8 | Mar 12–Mar 15 | Rate escalates to Tier 2 | $350/day (Maersk Tier 2) |
Weekend and Holiday Rules
Whether weekends count toward free time depends on the carrier and, in some cases, the terminal. Maersk and MSC count calendar days straight through — weekends included. CMA CGM excludes weekends from the free day count at certain US ports. Hapag-Lloyd excludes US federal holidays from the count at most US terminals.
This matters operationally. A Friday discharge with 4 calendar free days puts LFD on Tuesday. A Friday discharge with 4 business free days puts LFD on Thursday — two additional days. Always read the specific tariff, not the general policy summary.
Reefer and Hazmat Free Day Exceptions
Refrigerated containers (reefers) and hazardous material containers consistently receive fewer free days than standard dry boxes. Most carriers give reefers 2–3 free days versus 4–5 for dry containers. The reason is practical: reefers occupy powered plugs at the terminal, which are scarce. Hazmat containers may have additional restrictions based on the cargo classification.
LFD, Free Time, and Demurrage — Three Clocks, Not One
This is where most importers and even experienced freight forwarders get caught. LFD is not one date — it's three independent dates running simultaneously on every import container. The earliest of the three determines when charges start. For a full breakdown of each type, see Line LFD vs Terminal LFD vs Rail LFD.
| LFD Type | Set By | Charge Type | Typical Free Days (Dry) | Rate If Missed |
|---|---|---|---|---|
| Line LFD | Ocean carrier (SSL) | Carrier demurrage | 4–7 days from discharge | $150–$500/day (tiered) |
| Terminal LFD | Terminal operator | Terminal storage / wharfage | 3–5 days from availability | $60–$250/day |
| Rail LFD | Railroad (BNSF, UP, NS, CSX) | Rail storage | 2–4 days after unload | $75–$200/day |
A container destined for an inland rail ramp may have a carrier LFD of March 10 and a rail LFD of March 7 — meaning terminal storage charges start three days before the carrier's free time expires. Tracking only one clock is a guaranteed path to unexpected invoices.
What Happens After LFD Expires?
The moment LFD passes, a demurrage clock starts ticking. Carriers apply tiered rates — charges escalate the longer the container stays at the terminal. This tiered structure is intentional: it creates urgency to move cargo and clears terminal capacity.
| Days Over LFD | Maersk | MSC | CMA CGM | Hapag-Lloyd | ONE |
|---|---|---|---|---|---|
| Days 1–4 | $225/day | $200/day | $250/day | $200/day | $195/day |
| Days 5–8 | $350/day | $325/day | $375/day | $300/day | $295/day |
| Days 9+ | $450/day | $425/day | $475/day | $400/day | $395/day |
| 10-day total (example) | $3,350 | $3,050 | $3,550 | $2,900 | $2,850 |
Rates reflect each carrier's published D&D tariff as of Q1 2026 (e.g., per Maersk's January 2026 D&D tariff update, MSC's February 2026 tariff circular). Contract rates negotiated under service agreements may differ. Terminal storage charges apply separately and on top of carrier demurrage.
Ten days over LFD on a single container with Maersk costs $3,350 in carrier demurrage alone. Add APM Terminals storage charges at the Port of LA — which can reach $198/day in Tier 3 — and the total approaches $5,000 for one container. Multiply that across five containers on the same vessel with the same delay, and you're looking at a $25,000 event that could have been avoided with proactive LFD tracking. Use our demurrage calculator to model the cost impact on your specific shipments.
How to Find Your Container's Last Free Day
LFD data lives in different systems depending on the carrier and terminal. Here's how to locate it for the major shipping lines.
Maersk
- Go to maersk.com/tracking
- Enter your bill of lading number or container number (format: MAEU + 7 digits)
- Click into the container details tab
- Look for "Demurrage Free Time Expiry" or "Last Free Day" — it appears once the vessel has discharged at the destination port
- Note that Maersk also shows the availability date separately — LFD will not appear before the container is available for pickup
Maersk also supports EDI and API access for customers on their digital platform. For a complete portal walkthrough with screenshots, see How to Check LFD on Maersk.
MSC
- Navigate to msc.com and select Track & Trace
- Enter your B/L number or container number (format: MSCU + 7 digits)
- Select the destination port leg from the shipment timeline
- LFD appears in the container events section once the container has been discharged — look for "Demurrage Last Free Date"
- MSC displays both carrier LFD and, in some cases, the terminal availability date on the same screen
MSC requires a registered account for access to full container detail pages. Guest tracking shows limited information — the LFD field may not be visible without login.
Hapag-Lloyd
- Go to hapag-lloyd.com Track & Trace
- Enter the container number (format: HLCU + 7 digits) or B/L
- Click "Container Details" and scroll to the demurrage section
- The field labeled "Free Time Expiry Date" is the line LFD. Hapag-Lloyd is one of the few carriers that consistently surfaces this prominently on their public-facing tracking tool
- Hapag-Lloyd also sends proactive EDI notifications for LFD approaching — ask your account manager to activate this
Terminal Websites
Terminal LFD (storage free time) requires checking the terminal operator's own system. Key portals include:
- APM Terminals (LA/LB): apmterminals.com → LA portal → container inquiry
- Fenix Marine Services (LA): fenixmarineservices.com → gate inquiry
- TraPac (LA/Oakland): trapac.com → container availability
- LBCT (Long Beach): lbct.com → container lookup
- Garden City Terminal (Savannah): gaports.com → container status
- APM Terminals (NY/NJ): apmterminals.com → Port Elizabeth portal
Each portal has its own login requirements, container lookup format, and data refresh schedule. If you manage more than 20 active containers, manually checking each terminal daily is not sustainable. An automated LFD monitoring system that aggregates both carrier and terminal data eliminates the manual work and ensures nothing falls through the cracks.
Can You Extend Last Free Day?
Yes — and it's more achievable than many importers assume. Carriers regularly approve LFD extensions for documented delays. Here's the process that works.
Extension Request Process
- Submit the request before LFD expires. This is non-negotiable. Retroactive extension approvals are rare and typically require executive escalation. Submit at least 24–48 hours before the LFD when possible.
- Use the official channel. Maersk processes extension requests through their online portal (Maersk.com → My Shipments → Request Extension). MSC requires email to the local customer service office. CMA CGM uses their eSolutions platform. Hapag-Lloyd has an online form in their customer portal.
- Document the reason clearly. Carriers approve extensions most readily for: customs holds (CBP exam, FDA hold, USDA inspection), port congestion beyond the shipper's control, vessel delays causing short-notice discharge, trucker equipment shortages, and weather events. Provide documentation where available — a customs hold notice, a congestion advisory, a terminal closure notification.
- Get the approval in writing. Screenshot the portal confirmation or save the email. Demurrage invoices sometimes generate automatically before the extension is reflected in the billing system. You need documented proof to dispute those charges.
- Follow up on the invoice. Even with an approved extension, verify that the demurrage invoice correctly reflects the extended LFD. Billing errors are common when extensions are processed manually.
When Extensions Are Denied
Carriers routinely deny extension requests when: the delay is attributed to the importer's own planning (e.g., late customs filing), the request is submitted after LFD has already passed, or the container has a history of repeated late pickups. If an extension is denied and you believe the denial is unjust — particularly if the container was inaccessible due to terminal or carrier fault — you have legal recourse under OSRA 2022.
LFD Rules Under OSRA 2022
The Ocean Shipping Reform Act of 2022 (OSRA) fundamentally changed the legal framework around demurrage and free time in US ocean shipping. The FMC's implementing rule (Docket No. 22-29, codified at 46 CFR Part 545, effective May 2024) created enforceable billing standards.
Key Provisions Affecting LFD
- Inaccessibility prohibition. Carriers cannot lawfully charge demurrage for any period during which the container is not available for pickup — due to terminal congestion, equipment shortages at the terminal, government holds (CBP, FDA, USDA), or carrier-caused delays. If your trucker shows up and can't get the container because the terminal has no appointments available, that day should not count toward demurrage.
- Billing transparency requirements. Every demurrage invoice must itemize: the container number, the date free time began, the LFD, the daily rate by tier, and the total charge. Invoices lacking this detail can be challenged on procedural grounds.
- Dispute resolution pathway. The FMC established a formal mechanism for shippers to file complaints against carriers issuing non-compliant demurrage invoices. Successful complaints can result in refunds plus penalties against the carrier.
- Free time clarity. Carriers must clearly communicate when free time starts and ends. Ambiguous or retroactively assigned LFDs — previously a carrier tactic — are now legally untenable.
If you receive a demurrage invoice for a period when your container was under a government hold or the terminal was not accepting appointments, you have a strong basis to file a complaint with the FMC. Document everything: gate attempts, terminal closure notices, customs hold letters, and any carrier correspondence.
Related Resources
- The Ultimate Guide to Last Free Day Tracking — operational guide covering all three LFD types, port-by-port free day schedules, and tracking best practices
- Line LFD vs Terminal LFD vs Rail LFD — side-by-side breakdown of all three LFD clocks with real scenarios
- Demurrage Calculator — enter your LFD and pickup date to calculate demurrage charges by carrier