Nautical Term: FILO
Definition of FILO
Free In/Liner Out Transportation: This refers to seafreight services where the shipper assumes responsibility for the payment of inbound port charges, customs fees, and other associated costs for loading the container aboard the vessel. Conversely, the ocean carrier assumes the obligation to pay for the discharge costs, such as port charges, customs fees, and other related expenses, upon unloading the container from the ship at the destination port.
Example: A shipper, ABC Company, engages an ocean carrier, XYZ Shipping, to transport a full container load (FCL) of machinery parts from Shanghai, China, to Los Angeles, California, via Free In/Liner Out Transportation. ABC Company pays the ocean carrier for the ocean freight costs, and ABC Company is responsible for paying all the inbound port charges, customs fees, and other associated costs at the port of Shanghai upon loading the container aboard the vessel. Conversely, the ocean carrier, XYZ Shipping, assumes the obligation to pay for the discharge costs, such as port charges, customs fees, and other related expenses, upon unloading the container from the ship at the port of Los Angeles.
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