Definition
The grace period the carrier allows for using a container or terminal space before demurrage or detention applies.
Free time is the number of days the carrier grants — typically a handful at each end — during which a container can occupy terminal space or stay out for loading or unloading without extra charge. The clock starts on discharge or gate-out depending on the charge.
Once free time expires, demurrage (inside the terminal) or detention (outside it) begins. Negotiating longer free time on slow-clearing lanes is a standard lever forwarders use to protect customers from avoidable charges.
Related terms
Demurrage
A charge for keeping a container inside the port/terminal beyond the allowed free time.
Detention
A charge for holding the carrier’s container outside the terminal beyond the free time before returning it empty.
Terminal Handling Charge (THC)
A fee charged by the port terminal for handling a container between the vessel and the yard.
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