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Liner-Terms

Liner terms, or berth terms, refer to the inclusion of cargo operations like stuffing and discharge within the freight rate, while excluding costs prior to loading and after discharge. Various terms such as FILO, LIFO, and FIOS specify the responsibilities for loading and discharge costs, often leading to confusion among shippers regarding additional expenses. It is crucial for shippers to clarify what is included in their contracts to avoid unexpected costs at project completion.
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0% found this document useful (0 votes)
17 views

Liner-Terms

Liner terms, or berth terms, refer to the inclusion of cargo operations like stuffing and discharge within the freight rate, while excluding costs prior to loading and after discharge. Various terms such as FILO, LIFO, and FIOS specify the responsibilities for loading and discharge costs, often leading to confusion among shippers regarding additional expenses. It is crucial for shippers to clarify what is included in their contracts to avoid unexpected costs at project completion.
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© © All Rights Reserved
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Liner terms or berth terms: In terms of

line or pier, it implies that the operations


of cargo, stuffing, unstuffing and discharge
are quoted within the freight rate.
Operation costs previous to the loading
hook are excluded, as well as upon
discharge.

Your reference point…

Liner Terms

GB Shipping Italy
Liner Terms

General statement:
Liner terms or berth terms:
In terms of line or pier, it implies that the operations of cargo, stuffing, unstuffing and discharge
are quoted within the freight rate. Operation costs previous to the loading hook are excluded, as
well as upon discharge.

Full Liner Terms:


This is somewhat a vaguer term given different port practices. However, it generally implies that
the freight amount provided includes both shore based and on-board stevedoring,
lashing/unlashing, dunnage materials, securing/unsecuring and all costs of presenting to/receiving
the cargo from the ship's side; with the shippers/receivers just bearing the cost of discharging
from/reloading to the transport, along with the usual port charges/levies/taxes etc.
Frequently the terms are varied at different ends of the voyage i.e. FILO (Free In/Liner Out), LIFO
(Liner In Free Out) or FIFO (Free In/Free Out), etc.
To be absolutely sure of all liabilities, it is always advisable to request that terms clearly and
concisely indicate what is/isn't included in your particular contract - in layman's terms.

Liner Terms Hook:


Given that this is a notional point in chartering terms, this is best described as the shipper/receiver
arranging for delivery/receival of cargo to/from directly under ships hook and the ship paying for
the labour to stow the cargo in the vessels cargo holds, as well as on-board lashing & securing and
provision of dunnage materials, and to discharge again over the ship's side.
Shore based stevedoring aspects remain the responsibility of the shipper/receiver. However, there
are some owners that may incorporate these costs into their LTHH rate. Once again, ask owners to
clearly define this aspect.
Wharfage charges/dues/taxes can be a contentious issue but are usually considered to be for the
shippers/receivers account and there may also be many other statutory levies on cargo or freight
that may apply.
Many shippers/receivers are unaware of these additional costs and do not include them into their
costing and consequently may be left with an unexpected considerable expense at the completion
of a project.

GB Shipping Srls Phone: +39 02 41404474


Via Milano 445 mail: [email protected]
20007 Cornaredo (MI) – Italy web site: www.gbshipping.it
FI / Free in:
It implies that the corresponding costs of loading operations are not included in the freight and
will be absorbed by the cargo. Stevedoring and discharge costs are included.

FIO / Free in and out:


Also for bulk cargo, it implies that the freight rate does not include loading and discharge costs,
although it includes stevedoring costs.

FILO / Free in, Liner out:


Loading charges are absorbed by the cargo and discharge costs by the carrier.

FISLO / Liner out:


The freight rate does not include loading and stevedoring operations. Discharge is made on
carrier’s conditions, this means on carrier’s account.

FIOS / Free In, Out and Stowed:


The freight rate does not include the costs of loading, discharge and stevedoring operations.
It is most important to remember that the "free" reference is viewed from the ship owners point
of view - not the shipper's. Some shippers get caught out when they read the word "free" as they
incorrectly believe that it refers to them.
Freight rates quoted on a FIOS basis specifically exclude all aspects relating to cargo handling
operations. The ship is only responsible for expenses arising as a result of the ship calling into the
port, i.e. tugs, pilots and light dues etc.
Another very important consideration when booking cargo on FIOS terms is that the ship does not
bear any responsibility for the speed of loading or discharging.
Usually the rate agreed includes a fixed "free" period of time for loading/discharging operations,
after which time a daily demurrage is incurred. Obviously, this is of paramount importance where
port congestion or stevedoring performance is uncertain.
There are many overseas ports which fall into this category and particularly where vessel
demurrage rates can vary significantly, depending on the size and type of ship nominated to
undertake the particular project.

GB Shipping Srls Phone: +39 02 41404474


Via Milano 445 mail: [email protected]
20007 Cornaredo (MI) – Italy web site: www.gbshipping.it
FIOST / Free in and out and stowed and trimmed:
The same as FIO, but it excludes the carrier’s absorption of grain shovelling, which must be paid by
the cargo.

FIOST LS / Free in and out and stowed and trimmed, Lashed Secured:
In addition to what it is stated in FIOST, the expense of trimming and lashing cargo must be on
cargo’s account.

LIFO / Liner in, free out:


Loading charges are on carrier’s account and discharge costs are on cargo’s account.

GB Shipping Srls Phone: +39 02 41404474


Via Milano 445 mail: [email protected]
20007 Cornaredo (MI) – Italy web site: www.gbshipping.it

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