What is Last Free Day?
The last free day (LFD) is the final day on which cargo can remain at a terminal, or carrier equipment can be kept before return, without incurring demurrage, detention or storage charges. It is calculated from the free time granted in the carrier's tariff, service contract, NVOCC rate arrangement or terminal schedule, usually counted from discharge or from the time cargo becomes available. Demurrage and terminal storage typically run against loaded containers left at the terminal, while detention runs against carrier equipment kept outside it. Free time terms vary by carrier, port, equipment type and contract, and may be counted in calendar or working days. In the US, the Federal Maritime Commission's interpretive rule at 46 CFR 545.5 (2020) states that demurrage and detention should work as incentives for freight fluidity and weighs factors such as cargo availability and the ability to return empty containers.
Why it matters for forwarders
The LFD is the key date for planning pickups, and missing it can trigger charges that grow with each extra day. Forwarders should obtain the LFD from the terminal or carrier as soon as the vessel discharges, because customs or agency holds, appointment shortages and chassis availability can all stand between availability and pickup. Under the FMC's billing rule in 46 CFR part 541, effective May 2024, ocean carriers, NVOCCs and marine terminal operators must issue demurrage and detention invoices within 30 days of when charges were last incurred and include required details such as free time and the rate basis; an invoice that fails these requirements need not be paid. Billed parties have 30 days to dispute charges. In September 2025 the D.C. Circuit vacated the rule's provision on who may be billed (46 CFR 541.4) while leaving the rest of part 541 in effect, so track LFDs per container and audit invoices against these rules.