Liner Terms

Because of the great interest in the topic of "Liner Terms", we have provided additional infos for you, see below...

 

General:

The Terms are from the perspective of the shipping line and define which services (for example loading of the vessel, unloading of the vessel, stowage of the cargo in the vessel, trimming of the cargo in the vessel,… )  are included and which services are not included. Only the text version published by the shipping line is binding!

 

FILO (Free In Liner Out):

The cost of loading the vessel at the port of loading are not included (Free In) and the cost of unloading the vessel at the port of destination are included (Liner Out).

 

FIO (Free In Out):

The cost of loading the vessel at the port loading and the cost of unloading the vessel at the port of destination are not included.

 

FIOS (Free In Out Stowed):

How FIO and additional are the stowage cost in the vessel excluded.

 

FIOST (Free In Out Stowed Trimmed):

How FIOS and additional are the trimming cost in the vessel excluded.

 

FIOT (Free In Out Trimmed):

How FIOS but includes the trimming cost in the vessel.

 

FLT (Full Liner Terms):

The cost of loading the vessel at the port loading, the stowage- and the trimming costs are included. The cost of unloading the vessel at the port of destination are included.

 

LIFO (Liner In Free Out):

The cost of loading the vessel at the port loading are included (Liner In) and the cost of unloading the vessel at the port of destination are not included (Free Out).

 

Additional infos

 

FIOS (FREE IN, OUT, STOWED):
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 specifi cally 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 fi xed “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 signifi cantly, depending on the size and type of ship nominated to undertake the particular project.


LINER TERMS - GENERAL STATEMENT:
Liner Terms is a very ambiguous statement and can be interpreted in a variety of ways in different ports of the world and by different Ship Owners/Agents. Personally we would prefer to clearly defi ne the extent of responsibility when quoting on this basis.

 

LINER TERMS HOOK / 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.


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.