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How Do We Stop Containers Running Past Their Free Time Without Anyone Noticing?

Freight forwarders find demurrage and detention charges when the invoice lands. We build free time tracking per container that warns before the clock runs out.

Updated 3 min readBy SpiderHunts Technologies

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Quick answer — TL;DR

Demurrage and detention surprise forwarders because each container's free time depends on the carrier, the contract and the port, and the clock starts on events nobody is watching. We build free time tracking that knows each container's allowance from your carrier terms, starts the clock from discharge and gate-out events, and warns operators and customers before free time ends, so collection and empty return are arranged in time.

An invoice for a container everyone forgot

The carrier's invoice arrives with detention charges on a container that was delivered to a customer's warehouse and never returned. The customer unloaded it slowly, the haulier was waiting to be told it was empty, and nobody had told anyone that the free days were running out. Another container sat at the terminal for a week after discharge because the customs entry was held, and the storage bill arrives separately.

Now you have a dispute with your customer about who pays, and no clear record of who knew what, when.

Why free time is hard to watch

Free time is simple for one container and hard for hundreds. Each one has its own allowance and clock, and the events that start and stop the clock happen at the terminal and at the customer's site, not in your office.

  • Free days vary by carrier, contract, port and equipment type.
  • Demurrage, detention and port storage run on different clocks.
  • Discharge, gate-out and empty return events are on carrier and terminal systems.
  • Customers unloading containers do not know how long they have.
  • Hauliers wait to be told a container is empty.

What the surprises cost

Charges that could have been avoided land on you or your customer, and either way someone is unhappy. Disputes about who is responsible take time and damage relationships, especially when neither side has a clear record. And the invoices often arrive weeks later, when the job has already been closed and invoiced, so the charge comes out of margin unless someone catches it.

The free time tracking we build

  1. Your carrier terms are entered: free days by carrier, contract, port and equipment, and whether demurrage and detention are combined or separate. Where you have negotiated extra free time, that is recorded per contract.
  2. Each import container is linked to its terms when the job is created.
  3. Discharge, gate-out, delivery and empty return events are pulled from carrier and terminal data, and the clocks start and stop on them.
  4. Operators see a list of containers sorted by days of free time left, with warnings at thresholds you set.
  5. Customers are told, at delivery booking, how long they have to unload, and reminded before it runs out. Hauliers are told when an empty needs collecting.
  6. When a carrier invoice arrives, the system compares the charged days with its own record, and flags differences.
QuestionTodayWith tracking
How many free days does this box have?Look up the contractOn the container
When does the clock start?Nobody watchesFrom discharge and gate-out events
Who needs to act?UnclearOperator, customer and haulier warned
Is the carrier's invoice right?AcceptedCompared with recorded events

After

Containers are collected and returned in time more often, because the people who need to act know about it. When charges do arise, there is a record of warnings sent and events recorded, which makes the conversation with the customer factual. Carrier invoices are checked against events rather than paid as they come. And you can see which customers and lanes regularly run over, which is useful when you agree terms.

Operators stop keeping their own lists of containers to watch. The list is shared, so when someone is off, their containers are still being watched. Hauliers get a clearer instruction for empty returns, including which depot the carrier wants the empty back at, which is another place charges quietly start.

Who pays for a charge is a matter for your terms with the customer and your contract with the carrier. The tracking gives everyone the facts.

Checklist

  • Demurrage and detention invoices surprise you.
  • Free time terms are in contracts, not in a system.
  • Customers do not know how long they have to unload.
  • Empties wait for someone to tell the haulier.
  • Carrier charges are paid without checking the days.

FAQ

Frequently asked questions

The questions readers ask us after this guide.

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Where do the events come from?

From carrier and terminal data, through APIs or a tracking data provider, and from your haulier's delivery and return records.

Can it handle different free time for different contracts?

Yes. Terms are held per carrier, contract, port and equipment.

Will it tell us who should pay a charge?

No. That is a matter for your contracts and terms. It gives you the record of events and warnings.

Does it work with our forwarding system?

It reads jobs and containers from it and can write alerts and charges back where the system allows.

What affects the cost?

The number of carriers and contracts, the data source for events, and how many parties receive warnings.

Keep reading

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