Last Free Day
What is the Last Free Day?
The Last Free Day refers to the final day that imported goods can be stored at a terminal or warehouse free of charge before storage fees, also known as demurrage, begin to accrue. This date is crucial for importers and logistics coordinators to manage to avoid additional costs.
Why is the Last Free Day important?
The Last Free Day is important because it marks the deadline for moving goods out of the port or storage facility without incurring additional charges. Managing this date effectively helps businesses reduce operational costs and ensures smoother logistics handling.
How to determine the Last Free Day
The Last Free Day is typically communicated by the shipping line or terminal operator once the shipment arrives at the port. It can be found on the Bill of Lading or received directly from the terminal’s notice, and importers should verify this date promptly to plan for timely cargo retrieval.
What happens after the Last Free Day?
After the Last Free Day, storage fees start accruing for each day the cargo remains at the facility. These fees can escalate quickly, making it costly for shippers who fail to move their goods in time. Timely removal of goods is critical to avoiding these additional charges.
How to avoid demurrage charges post Last Free Day?
To avoid demurrage charges, it’s crucial to monitor shipment arrivals closely, clear customs quickly, and arrange for transportation out of the port or terminal before the Last Free Day. Effective communication with logistics providers and timely documentation are key factors in this process.
Strategies for efficiently managing the Last Free Day
Efficient management of the Last Free Day involves proactive planning, including pre-clearing customs when possible and scheduling pickups well in advance. Utilizing technology such as shipment tracking tools and maintaining good relationships with freight forwarders can also help streamline the process.
