Last Free Day
Last Free Day (LFD) is the last day of free storage offered by a terminal before demurrage or per diem fees are applied to a shipment.
If a shipper wants to avoid these fees, it is crucial to ensure that shipments are picked up before the last free day. The allotted free storage time for a container or shipment can vary by carrier, terminal, and terminal type (rail, port, or air).
Additionally, the number of free storage days can be affected by whether a shipper is moving FCL (full container load) or LCL (less-than-container load) shipments. The LFD is outlined in the contract between the carrier and shipper.
Below is a general outline of LFD times, but always check the specific contracts with carriers for accurate LFD information.
LFDs for Full Container Load Shipments
If you are shipping FCL, port terminals typically offer 3-5 days of free storage before the LFD. During periods of high congestion, free storage times can be reduced to prevent port congestion.
LFDs for Less-Than-Container Load Shipments
If you are shipping LCL, then your shipment will likely be moved to a container freight station (CFS) where the full container is deconsolidated. A CFS typically allows for one week of free storage.
LFDs at Rail Terminals
Rail terminals typically allow 2 days of free storage, though this may include weekends, depending on the carrier.
LFDs at Airline Terminals
Airline terminals typically offer 2 or 3 days of free storage.
Remember to check the contract between the carrier and shipper for information on the LFD, and clarify if the allotted free storage time includes weekends.