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What is the Last Free Day (LFD)?

The Last Free Day is the last day a container can stay at a port without demurrage. 2026 LFD windows by port, demurrage rates, and how to avoid the charges. (Updated 5/3/26)

Published on June 10, 2024

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Key Takeaways

The Last Free Day (LFD) is the last day a container can stay at a port before demurrage starts. Free time runs 3-7 days at major US ports in 2026. The FMC’s billing-party limit was vacated in late 2025, so importers can again be billed directly. Move containers off the dock before LFD or expect $150 to $500 per container per day.

shipping containers at a port

Container demurrage exposure changed quietly in late 2025. The DC Circuit struck down the FMC rule limiting which parties carriers could bill, and FMC formally removed it from the CFR on December 29, 2025. For ecommerce brands importing through US ports, that means more billing scenarios are back in scope, and the only durable defense is the same one that always worked: get the container off the dock before the Last Free Day.

Understanding the Last Free Day (LFD)

The Last Free Day (LFD) is the final day a shipping container can stay at a port, terminal, or rail yard without incurring demurrage. After LFD, charges accrue per container per day until the container leaves the terminal. From April 2020 to September 2023, the nine largest carriers collected about $13.8 billion in detention and demurrage charges, and revenue stayed elevated through 2024-2025 even as ocean freight rates normalized. For B2B importers, LFD is the operational deadline that decides whether a container costs only its negotiated freight rate or several thousand dollars on top.

2026 LFD Windows by Port

Free time at the major US ports varies by terminal, carrier, and container type. Here is the 2026 baseline for dry import containers at four of the busiest US ports:

PortFree Time (loaded imports)2026 Notes
Los Angeles / Long Beach3-5 calendar daysONE raised tariffs at ITS Long Beach and LA effective Jan 23, 2026. Calmer than 2024 congestion peaks.
New York / New Jersey5 calendar daysMaersk Newark dry/SOC tiers up $20/day eff. Jan 1, 2026. Q1 2026 saw 2-5 day anchorage waits, the biggest LFD risk this year.
Savannah (Garden City)5-7 calendar days (carrier-driven)GPA does not set demurrage; rates flow from carrier tariffs.
Houston (Bayport / Barbours Cut)7 calendar days$45 per container per day port-imposed dwell fee starts day 8, on top of carrier demurrage. Reduced reefer free time eff. May 1, 2026.

Free time depends on container type (dry vs reefer), the holiday calendar, and your specific contract. Always confirm the exact LFD on a given booking against the carrier and terminal tariff PDFs.

What Changed in 2026

FMC §541.4 vacated. The DC Circuit struck down §541.4 of the FMC’s D&D billing rule on September 23, 2025, and the FMC formally removed it from the CFR on December 29, 2025. Carriers and marine terminal operators can again bill any party in the supply chain, not just the contracting party on the bill of lading. The 30-day invoice deadline and accuracy and sufficiency requirements remain in force. Importers should reconfirm which parties are receiving D&D invoices on their accounts and update internal billing-review SOPs.

Per-diem rates rose at most carriers. Maersk added $10 to $20 per day across all tiers effective January 1, 2026 at most US gateways, including Newark, Miami, and Philadelphia. ONE raised tariffs at ITS Long Beach and LA on January 23, 2026. Operating reefer rates rose more steeply than dry rates.

Q1 2026 NY/NJ anchorage waits. Anchorage delays of 2 to 5 days at PANYNJ in early 2026 pushed multiple importers past LFD before they could schedule pickups. LA/LB and Savannah ran clean. Operations teams importing through NY/NJ should build extra buffer into the LFD risk model for 2026.

How Demurrage and Detention Stack

Demurrage and detention are billed separately and can stack on the same shipment. Demurrage applies when a container sits inside the terminal past LFD. Detention applies when an empty container is held outside the terminal past the carrier’s free time. 2026 rate ranges:

    Tier 1 (days 1-5 past LFD): ~$150 to $300 per container per day.

    Tier 2 (days 6-10): ~$300 to $500 per container per day.

    Tier 3 (11+ days): $500 to $800+ per container per day.

    Houston port-imposed dwell fee: $45 per container per day starting day 8 past LFD, on top of carrier demurrage.

How Operations Teams Avoid LFD Charges

    Warehouses near the port. A warehouse close to the terminal cuts drayage transit and reduces the chance of missing LFD on appointment delays. See 3PL Center locations.

    Pre-cleared customs. ISF filed 24 hours before vessel departure and entry filed before vessel arrival means the container can release the moment it deramps.

    Drayage with terminal appointments. Pre-booked terminal appointments on the day after deramp. Drayage planning matters more than carrier free time at congested ports.

    Real-time container tracking. Vessel ETA, deramp event, and terminal availability should all flow into a single operations dashboard, not three separate carrier portals.

    Chassis pool membership. Pre-arranged container chassis avoid the day-zero scramble for equipment.

    Appointment system integration. Tools like 3PL Center’s advanced appointment system automate the schedule-and-confirm loop with the terminal.

How 3PL Center Cuts LFD Risk

3PL Center has warehouses in California and New Jersey, both near the major US ports. Same-day shipping for orders received by 2pm local. Drayage and a built-in terminal appointment system get containers off the dock before LFD. Get a quote to see how we cut demurrage exposure for high-volume importers.

LFD FAQs

Stop paying demurrage fees

3PL Center has warehouses in California and New Jersey, both near the major US ports. Our drayage team and appointment system pick up containers before demurrage charges start. Get a quote to see how we can help.