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SHIPPER GUIDE

Last free day, per diem and demurrage: what they cost and how to avoid them

How terminal storage, per diem and demurrage charges work on GTA containers, and the practical ways to avoid them: pre-pull, yard storage and transloading.

Two clocks start when your container lands

When a container becomes available at a rail terminal, two separate clocks start. The first is the terminal's free time: a set number of days the container can sit at the ramp without storage charges. The second belongs to the shipping line, which owns the container and charges for every day it is out beyond its own free period.

The terms vary by line, terminal and contract, so always check your arrival notice and your contract for the exact free days.

Last free day

Last free day is the final day a container can stay at the terminal without storage charges. After it, the terminal bills storage for each extra day. Planning the pull around last free day is the single most useful thing a drayage carrier does for you.

Per diem and demurrage

Per diem (sometimes called detention) is what the shipping line charges while its container is outside the terminal, until the empty is returned. Demurrage is generally used for charges while the loaded container sits inside the terminal past free time. The names are used loosely across the industry, so read the line items on your invoice carefully.

What matters in practice: storage at the ramp stops when the container leaves the terminal, but per diem keeps running until the empty goes back.

Ways to avoid the charges

Each option below targets a different clock:

  • Pre-pull: the container leaves the terminal before last free day and waits in a private yard, which stops terminal storage
  • Yard storage: a daily yard rate is usually lower than storage at the ramp
  • Transloading: the freight is unloaded and the empty goes back right away, which stops per diem
  • Drop and pick: you unload on your schedule and pay chassis days instead of driver waiting time
  • Fast empty return: the depot gate receipt is your proof the clock stopped

A simple checklist when a container is on the water

Send the container number and ETA to dispatch early. Confirm customs release with your broker. Tell dispatch your real receiving dates. If the dates don't line up with free time, decide in advance whether to pre-pull, store or transload instead of deciding on last free day.

Have a container to move? Send the container number, terminal and delivery postal code and dispatch will reply with an itemized price and a pull date.

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FAQ

Quick answers

Does pre-pulling a container stop per diem?

No. Pre-pulling stops terminal storage. Per diem keeps running until the empty container is returned to the shipping line's depot.

What stops per diem fastest?

Unloading the container and returning the empty. Transloading at a nearby facility is often the quickest way to do that.

LET'S MOVE IT

Have a container landing soon?

Send the container number and delivery address. Dispatch replies with a price and a pull date.

Office +1-647-693-3360 ext. 1002Toll free 1-866-235-4790