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Laden and Empty Containers: Free Time and Charges

A laden container holds cargo and is sealed; an empty container does not. An FCL export moves the same box through both states: collected empty from the depot, loaded at the factory, gated back in as a laden container, then stripped at destination and returned empty within free time. Understanding the two states is most of what keeps demurrage and storage off your invoice.

Laden and empty containers

An empty container is collected from the depot the carrier nominates, and its condition is recorded on the equipment interchange receipt when it is picked up. A laden container has been loaded, secured, weighed, and sealed with a customs seal, and is ready to be loaded onto the vessel.

How the two states differ
Empty containerLaden container
Direction of travelDepot to factoryFactory to depot or terminal
SealedNoCustoms seal applied and number recorded
InspectionCondition noted at pick-upWeighed before gate-in; overweight addressed
Charge clock startsFree time runs from pick-upFree time at destination runs from discharge or collection
Main riskSitting idle and running out of timeOverweight, seal mismatch, document mismatch

The gate-in and empty-return cycle

  1. Collect the empty container from the nominated depot against the equipment release, checking the box jointly and recording it on the interchange receipt.
  2. Move it to the factory at the agreed time, avoiding loading in rain or snow.
  3. Load, secure, brace, and count the cargo for the container type and the goods.
  4. Weigh it, apply the seal, and record the seal number. Address any overweight issue before gate-in.
  5. Return the laden container to the depot or take it straight to the terminal, submitting container and seal numbers.
  6. Declare for export and make sure the release message reaches the terminal so the box is accepted before the cut-off.
Whether a laden container goes straight to the terminal or back to the depot first depends on the terminal and the carrier. Some terminals require a depot return for inspection or consolidation, and a direct delivery can be turned away.

Overweight containers

An overweight container runs into two separate sets of limits: the container's own maximum gross weight and the carrier's or terminal's operating limit, which decide whether it can be shipped, and road vehicle limits, which decide whether it can leave the factory gate.

Where weight limits apply
StageLimit set byConsequence
ContainerMaximum gross weight including the tareCannot be shipped, or cargo has to be removed
CarrierLane and terminal operating limitsOverweight surcharge or refusal of the booking
RoadVehicle and road regulationsCannot leave the factory, or needs splitting across vehicles
TerminalGate-in weight ceilingsRefused at the gate
Declare the actual gross weight at booking for dense cargo. Overweight surcharges and limits are usually tighter on short-sea lanes. Judge from weighed figures rather than the container's theoretical payload.

Demurrage and storage compared

Two overrun charges
ChargeWhat is occupiedClock starts
DemurrageThe container itself, held beyond free timeCharged per day once free time expires
DetentionThe container held outside the terminal beyond free timeCharged per day once free time expires
StorageSpace in the terminal or depotCharged per day once free storage expires

Demurrage and detention look at the equipment, because a carrier's box sitting idle or tied up disrupts its fleet rotation. Storage looks at space, because the cargo or container is occupying terminal or depot ground. The two can run at the same time, and commonly do when clearance at destination is slow.

Free storage and free time at destination are usually shorter than at origin, and they vary by carrier. Confirm the number of days at both ends when booking and put it in writing for your customer.

How free time is counted

Free time is set by the carrier, not the terminal. The same port can have different periods on different carriers, so confirm from the booking confirmation and the bill of lading terms rather than assuming.

Closing the loop: pick-up to return

  1. Collect the empty container against the equipment release, recording its condition and taking photographs.
  2. Load at the factory, securing and weighing the cargo, and record the container and seal numbers.
  3. Gate the laden container back in or deliver it to the terminal, submitting the numbers and cooperating with weighing.
  4. Load onto the vessel once released and gated in before the cut-off.
  5. Strip at destination after the consignee has cleared and collected the container.
  6. Return the empty container to the nominated depot within free time and obtain the return receipt.
Always obtain the return receipt, the returned copy of the interchange receipt. Without it there is no evidence the container came back, and the overrun liability stays with whoever collected it.

Container damage and contamination

Responsibility for dents, distortion, or contamination during the container's movement turns on the equipment interchange receipt at pick-up and at return. Damage that was not recorded at pick-up is attributed to the party that collected it.

Damage is normally charged at the repair cost, and even a minor dent can generate a bill. The photographs and notes on the interchange receipt are the only defence.

Frequently Asked Questions

What is the difference between a laden and an empty container?

A laden container has been loaded, secured, weighed, and sealed and is ready for the vessel. An empty container holds no cargo and is collected from the carrier's depot. They differ in direction of travel, inspection requirements, and when the charge clock starts.

When do charges start on each?

A laden container incurs demurrage and storage once destination free time expires. An empty container running idle after pick-up at origin, or not returned at destination within free time, incurs the same overrun charges. Free time is the dividing line in both cases.

What is the difference between demurrage and detention?

Demurrage relates to the container itself being held beyond free time. Detention relates to the container being held outside the terminal beyond free time. Both are charged by the carrier. Storage is charged by the terminal or depot for the space the cargo or container occupies.

How much free time do I get?

It is set by the carrier, counted separately at origin and destination, and normally tighter at destination. The exact number of days comes from the booking confirmation and bill of lading terms, and can differ between carriers at the same port.

How is an overweight container dealt with?

Declare the actual gross weight at booking. Exceeding the carrier's or terminal's limit means cargo has to be removed or an overweight surcharge applies, and exceeding road limits means the container cannot leave the factory. Judge from weighed figures, not the theoretical payload.

What happens if I miss damage at container pick-up?

It will be attributed to you at return, and you will be charged for repair or cleaning. The interchange receipt is the only effective evidence, so inspect the shell, doors, floor, and seals at pick-up and record anything unusual with photographs.

What proof do I get when I return an empty container?

The return receipt, which is the returned copy of the equipment interchange receipt. Without it there is no evidence the container was returned, and overrun liability remains with whoever collected it, so ask for it immediately on return.

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