Have you ever been frustrated by unexpectedly high demurrage and detention fees? These charges often accumulate unnoticed, gradually eroding your profit margins. A clear understanding of "standard free time" can help you avoid these unnecessary expenses.
What Is Standard Free Time?
Standard free time refers to the period during which carriers (such as shipping lines or airlines) allow customers to use their equipment or facilities without additional charges. This grace period covers both demurrage and detention fees. Demurrage applies when cargo remains at the port or warehouse beyond the allotted free time, while detention fees are incurred when containers aren't returned to the carrier within the specified period after being picked up.
Why It Matters
Once the standard free time expires, carriers begin charging demurrage and detention fees. These costs increase progressively with each additional day of delay, making it crucial to understand and utilize the free time effectively. The duration of standard free time varies among carriers and depends on multiple factors including shipping routes, cargo type, and individual service agreements.
Before shipping goods, always verify the specific standard free time with your carrier and plan accordingly. Ensuring timely cargo pickup and container return within the free period can prevent substantial additional costs. Proper management of standard free time can significantly reduce logistics expenses and improve operational efficiency.