Last free day in drayage: how to stay inside free time
The last free day (LFD) is the final day a container can stay somewhere without a time charge. An import has two: the pickup LFD, the last day the loaded box can sit at the terminal before storage or demurrage starts, and the empty-return LFD, the last day to return the empty before detention or per diem starts. Exports run on the terminal's earliest return date and cutoff instead. Both dates are set by the terminal, the shipping line or your contract and are counted on the terminal's local calendar, so a dispatcher needs every date on every container, every day, in the terminal's time zone.
Key points
- An import has two last free days: one for pickup (terminal space) and one for empty return (the line's equipment).
- A container under a customs, line or terminal hold cannot be picked up, but its free time may still be running. Record when each hold is placed and lifted.
- Under 19 CFR 4.37, unreleased import cargo may stay at the place of unlading until the fifteenth calendar day after landing, after which general order procedures begin.
- A pre-pull trades terminal storage for yard storage, an extra move and an earlier start on the equipment clock.
- Count deadlines in the terminal's time zone, not the dispatch office's.
One container, two last free days
The phrase "last free day" is used for two different deadlines on the same import, and mixing them up is one of the most common ways a drayage carrier ends up paying for a container it moved on time.
| Pickup LFD | Empty-return LFD | |
|---|---|---|
| What it protects | Terminal or ramp space | The shipping line's container (and often the chassis) |
| Free time starts | Usually when the box is discharged and available | When the loaded box leaves the terminal |
| Missing it leads to | Demurrage or storage | Detention or per diem |
| Set by | Terminal schedule, line tariff or contract | Line tariff, service contract or interchange terms |
| Who controls the outcome | Holds, appointments and your trucks | The customer's unloading and an open return location |
The two are related but not the same. Picking up early does not extend the return date, and many lines start the equipment clock at out-gate, so pulling a box days before the customer can unload it may move the cost from one charge to the other. The guide to demurrage, detention and per diem explains who bills each charge and how to dispute one.
There is no federal number of free days. Free time is set by the terminal, the line's tariff or the contract and varies by port, line, equipment and customer. Whether weekends and holidays count is a term of that document too. The FMC's billing rule makes the dates visible after the fact: a demurrage or detention invoice must show the allowed free time in days, the start and end dates of free time, the container availability date for imports and the earliest return date for exports (46 CFR 541.6(b)). Your job is to know those dates before the charges start, not to read them on an invoice.
Holds: why a container can be late before it is ready
A container can only be picked up when every party with a claim on it has released it. The usual three:
- Customs release. U.S. Customs and Border Protection has to release the cargo. A box selected for examination, or one whose entry has not been filed or accepted, stays put.
- Shipping-line (freight) release. The line releases the box once freight is paid and the bill of lading terms are met, for example the original bill surrendered or a telex release issued.
- Terminal release. The terminal may hold a box for its own fees, a missing booking or an operational reason, and you still need terminal access for your truck and driver, often an appointment.
A hold does not always stop free time. Whether it does depends on the terminal's and line's terms, and that is where disputes start. The FMC's interpretive rule on demurrage and detention, 46 CFR 545.5, says the Commission may consider whether demurrage and free time relate to cargo actually being available for retrieval, how and when notice of availability is given, and the circumstances of government inspections. If a box sat under an exam hold through its LFD, write down when the hold was placed and lifted; that record is your argument later.
Unreleased cargo and general order
Customs has its own clock for cargo nobody enters. Under 19 CFR 4.37(a), merchandise landed but not covered by a release permit may remain at the place of unlading until the fifteenth calendar day after landing, and the carrier must notify Customs of unentered merchandise no later than 20 calendar days after landing. The carrier must also notify a bonded warehouse qualified to receive general order merchandise, which then arranges transport and storage at the risk and expense of the consignee (19 CFR 4.37(c)). Merchandise not entered within the time provided becomes general order merchandise (19 CFR 127.1(a)). For a drayage carrier the practical point is simple: a box that has not cleared customs within those weeks may leave by someone else's truck, to someone else's warehouse.
Pre-pulls: beating storage without creating per diem
A pre-pull moves a ready container from the terminal to your own or a partner's yard before the customer can take it, so that it is off terminal land before the pickup LFD. It is the standard answer when the customer's appointment is after the LFD, when the terminal will be closed, or when appointments are scarce.
It is not free, and it is not always the cheaper choice. A pre-pull adds:
- an extra move from the terminal to the yard, and later a second move to the customer;
- yard storage while the box waits;
- chassis days, because the box usually stays mounted;
- an earlier start on the empty-return clock where the line counts it from out-gate.
Before a pre-pull, compare the storage the box would incur at the terminal with the cost of the extra move, yard storage, chassis rental and any per diem days it brings forward. Agree with the customer in advance who pays for the pre-pull and the yard time; it is a separate service and should be billed as one.
Exports: earliest return date and cutoff
An export runs on two terminal dates rather than an LFD. The earliest return date is the first day the terminal will accept a loaded export container for a given sailing. Deliver earlier and the box may be refused, or accepted and charged storage. The cutoff is the last date and time the terminal accepts it for that vessel. Miss it and the box rolls to a later sailing, often with charges and an unhappy customer.
Between the two sits the equipment clock: the empty left a depot or terminal for loading, and per diem free time is counting down while the shipper loads it. A late loading appointment, a missing booking number or a weight problem can turn a comfortable window into a cutoff missed by hours. Track the booking number, the vessel, the earliest return date and the cutoff on every export, and treat the cutoff as a time, not just a date.
Terminal time zones and the calendar day
A last free day is a date on the terminal's own calendar. A dispatcher in Chicago working boxes at a Los Angeles terminal is two hours ahead of it; one in New York working a rail ramp in Dallas is an hour ahead. At the end of the dispatcher's day it can still be mid-afternoon at the terminal, and a dispatcher working late at night can already be on tomorrow's date while a terminal on the Pacific coast or in Hawaii is still on today's. Counting days on the office clock produces deadlines that are off by one at exactly the wrong moment.
Two habits fix it: store each container's dates against its terminal's time zone, and state cutoffs with the zone ("16:00 Pacific"), never just a time. When a team covers ports on several coasts, the morning review should be ordered by deadline in terminal time, not by the order containers were entered.
A daily routine that keeps containers inside free time
- Start with what is overdue and what is due. Sort every open container by its nearest deadline, pickup LFD, empty-return LFD or export cutoff, in terminal time. Anything with two days or less gets a plan today.
- Check releases for boxes due for pickup. Customs, line and terminal release, plus terminal access for the truck you intend to send. Record each check and when you made it; a release you confirmed yesterday can be reversed today.
- Book appointments early. Terminals that require appointments may have none on the LFD itself. If there is nothing before the LFD, keep the evidence and decide on a pre-pull.
- Chase empties with the customer. For every box delivered, know when it will be empty and where it goes back. The line's designated return location can change, and some returns need a reference number.
- Confirm export bookings. For each loaded export, check the earliest return date, the cutoff and the booking against the terminal's current schedule.
- Write down exceptions as they happen. A refused empty, a closed gate, an exam hold. Each one needs a time and, where possible, a screenshot or email. These records decide the dispute weeks later.
Dates and holds change during the day. Confirm with the terminal and the line before dispatching; this article is general information, not legal or customs advice.
How TruckerPro tracks last free days
TruckerPro's Intermodal & Drayage workspace is on the Elite plan and up, switched on in company Settings. Each container is a job with its import or export direction, shipping line, ocean booking, pickup last free day, empty-return last free day, earliest return date, export cutoff, empty return location and reference, and seal number. The terminal field suggests US and Canadian ports and rail ramps with their time zones, and free text is still allowed.
Pickup and empty-return last free days and the export cutoff are counted in the terminal's own time zone, flagged as due when two days or less remain and as overdue after, and shown on the drayage board and on the container's page. Your team records customs release, shipping-line release, terminal release, terminal access and equipment inspection as not verified, verified clear, on hold or not required, and a pickup, pre-pull, export delivery or street-turn move is blocked until each check is clear or not required. Containers move through stages from Awaiting release, Ready to collect, Pre-pulled and At yard to At customer, Empty ready, Container returned or Export gated in, and Closed, and every change is logged as an event on the container. Releases and dates are entered by your team; TruckerPro does not pull them from terminals, ports, railroads or shipping lines. See all features or what a TMS does.
Frequently asked questions
What does last free day mean in drayage?
The final day a container can stay somewhere without a time charge. For an import, the pickup last free day is the last day at the terminal before storage or demurrage, and the empty-return last free day is the last day to return the empty before detention or per diem.
Who sets the last free day?
The terminal, the shipping line's tariff or the service contract. There is no federal number of free days, and the terms vary by port, line, equipment and contract.
Does free time stop while a container is on hold?
It depends on the terminal's and line's terms. The FMC's interpretive rule says the Commission may consider whether free time relates to cargo being available for retrieval and the circumstances of government inspections (46 CFR 545.5). Record when each hold is placed and lifted.
What happens to import cargo that is never released?
Under 19 CFR 4.37, unreleased cargo may remain at the place of unlading until the fifteenth calendar day after landing; the carrier then notifies Customs and a general order warehouse, which moves and stores it at the consignee's risk and expense.
What is a pre-pull?
Moving a released container from the terminal to a yard before the customer can receive it, to get it off terminal land before the pickup last free day. It adds an extra move, yard storage and chassis days, and can start the empty-return clock earlier.
What is the earliest return date for an export?
The first day a terminal will accept a loaded export container for a given sailing. Deliveries before it may be refused or charged storage; the cutoff is the last date and time the terminal accepts the container for that vessel.
Sources
- 19 CFR 4.37, General order (eCFR)
- 19 CFR 127.1, Merchandise considered general order merchandise (eCFR)
- 46 CFR 541.6, Contents of demurrage and detention invoices (eCFR)
- 46 CFR 545.5, Unjust and unreasonable practices with respect to demurrage and detention (eCFR)
- U.S. Customs and Border Protection, Basic import and export
- Federal Maritime Commission
Regulations change. Check the current rule at the source before you act on it; this page is general information, not legal or tax advice.