First, separate the two container charges
| Charge | When it arises | Reference point for the clock |
|---|---|---|
| Demurrage | The container is still inside the terminal or yard and has not been picked up | Usually from the discharge date |
| Detention | The container has been picked up but not returned on time | Usually from the container pick-up date |
In short: sitting in the terminal means demurrage; picked up and not returned means detention. Each leg has its own free time, and each is charged separately once it is exceeded.
When exactly does free time start?
This is the most error-prone point, and there are at least three conventions in the market:
- From the discharge date — the most common; the clock starts the moment the container lands.
- From the container pick-up date — some carriers count from the act of picking the box up.
- From the arrival date (ATA), on calendar days including holidays — a few carriers state exactly this, and it is the most time-hungry convention of the three.
⚠️ So "how many days" and "from which date" have to be asked together. Ask only for the number and you can lose several days without noticing. Free time can also differ by container type: dry, reefer, open-top and flat-rack boxes often each carry their own number of days.
Extending free time: whether it can be done, and when
- It can be done, but start early: an extended D/O is normally applied for before the original free time expires. Don't wait until you are already over.
- Deadlines and minimum periods differ: extension cut-offs, the minimum extension period and the documents required all vary by carrier, so check them at the same time as the free time itself.
- There is a minimum extension period: some carriers require an extension of at least a few days; one or two days cannot be arranged.
- Extra free time has to be requested at the origin port: some carriers state that additional free time or a demurrage discount can only be applied for at the port of loading. Applying once the cargo has reached Indonesia is usually too late.
How overstay charges are priced: stepped, not linear
Overstay charges in Indonesia are mostly stepped by day band: one rate for the first band, another rate for the next, and another again as it drags on. In other words the day-20 unit price can be far above the day-8 price — over the final days the cost climbs exponentially rather than in even increments.
The right move is therefore to have the pick-up and delivery schedule set while days still remain on the clock, not to do the arithmetic after you are over. Our internal rule is to raise the alarm at three days left.
Stop-loss checklist
- Ask at the booking stage: how many free days this shipment gets, from which date, whether holidays count, and whether the container type changes the number.
- Request extra free time at the origin port rather than hoping to add it at destination.
- Once the D/O is released, schedule the pick-up immediately: documents, trucking and warehouse receiving times fixed together, not one after another.
- Watch the "three days left" number: if nothing is scheduled three days before expiry, escalate or apply for an extension.
- Leave processing time for an extension application: payment, approval and processing all take time, and applying on the last day often does not make it.
- Keep the return receipt: deposit refunds usually require proof that the container was returned, and an incomplete file means the money does not come back.
Common misconceptions
- ❌ "Free time counts business days" → most carriers count calendar days, including holidays.
- ❌ "The clock starts when I pick the box up" → demurrage normally starts on the discharge date.
- ❌ "Extensions can be arranged at any time" → there are cut-offs, minimum extension periods, and often limits on how late the file can be filed.
- ❌ "The charge is fixed" → it is stepped, and it gets more expensive the longer you wait.
This page is a business explanation and does not constitute legal, customs or pricing advice. Carriers' free-time allowances, start-date conventions, extension rules and rates change continually, so the carrier's current notice and invoice always govern; no specific amounts are listed here. Wuhan Freedom International Logistics Co., Ltd. · Licensed PPJK · Jakarta / Semarang / Wuhan.