Glossary

Free In / Liner Out (FILO)

Definition

Free In / Liner Out (FILO) is a shipping term used to define the cost allocation and responsibilities of the shipper and the carrier in the loading and unloading of goods. Under FILO terms, the shipper is responsible for the cost and handling of loading the cargo onto the vessel (Free In), while the carrier is responsible for the cost and handling of unloading the cargo from the vessel at the destination port (Liner Out). Essentially, this term outlines that the carrier will only charge for unloading costs, and the shipper is responsible for all costs associated with loading the goods.

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FAQ

Under FILO terms, the shipper is responsible for: 1. Preparing and packaging the goods for shipment. 2. Arranging and paying for the transportation of goods to the port of loading. 3. Loading the goods onto the vessel, including any associated costs, such as labor, equipment, and fees.
Under FILO terms, the carrier is responsible for: 1. Providing a suitable vessel for the transport of goods. 2. Ensuring the safe and secure transportation of goods from the port of loading to the port of destination. 3. Unloading the goods at the destination port, including any associated costs, such as labor, equipment, and fees.
FILO differs from other shipping terms in the allocation of costs and responsibilities for loading and unloading: - **Liner In / Liner Out:** Both loading and unloading costs are covered by the carrier. - **Free In / Free Out (FIFO):** Both loading and unloading costs are covered by the shipper. - **Free In / Liner Out (FILO):** Loading costs are covered by the shipper, while unloading costs are covered by the carrier.
Example or usage in road freight logistics

A shipper in Japan needs to transport electronic goods to a buyer in the United States. The shipper and carrier agree on FILO terms for the ocean freight. The shipper arranges and pays for the transportation of goods to the port of loading in Japan and covers all costs associated with loading the cargo onto the vessel. The carrier is responsible for safely transporting the goods to the destination port in the United States and unloading the cargo upon arrival, including any associated costs.

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