---
title: "Filo"
description: "Free in / Liner Out – It means that loading incl. lashing & securing of goods are excluded in the price  but discharge cost are included in the price"
url: "https://oceancargo.co.uk/shipping-terms/filo"
date: "2026-05-30T16:18:15+00:00"
language: "en-GB"
---

![Ocean Cargo](https://oceancargo.co.uk/images/GenPics/OCs-Customs-Brokerage.webp)

 # FILO (Free In / Liner Out): A Comprehensive Guide for UK Businesses

## Understanding FILO in Global Freight Forwarding

In the intricate world of international shipping, Incoterms and various freight terms dictate who is responsible for what, when, and where. Among these, FILO, or "Free In / Liner Out," is a crucial term that defines the allocation of loading and discharging costs between the shipper and the carrier. For UK businesses engaged in global trade, a clear understanding of FILO is essential for accurate budgeting, risk management, and seamless supply chain operations.

At Ocean Cargo, we believe in demystifying complex logistics. This guide will break down FILO, explain its implications, and help you determine if it's the right choice for your next shipment, ensuring you avoid unexpected costs and maintain control over your freight.

## What Does FILO (Free In / Liner Out) Mean?

FILO is a shipping term that precisely delineates the responsibilities for cargo handling at both the origin and destination ports. Let's break down each component:

- **Free In (FI):** This part signifies that the cost and responsibility for loading the cargo onto the vessel at the port of origin are **excluded** from the freight rate provided by the shipping line. This means the shipper (or their appointed agent, such as Ocean Cargo) is responsible for all expenses and arrangements related to bringing the goods to the ship's side, and then loading, stowing, lashing, and securing them within the vessel.
- **Liner Out (LO):** This indicates that the cost and responsibility for discharging the cargo from the vessel at the port of destination are **included** in the freight rate. The shipping line (or "liner") covers the expenses of offloading the goods from the ship and placing them onto the quay or into a designated area within the port terminal.

In essence, with FILO, you pay for getting your goods onto the ship, and the shipping line pays for getting them off. This clear division helps in understanding the total landed cost of your goods.

## Key Responsibilities Under FILO

To further clarify, here’s a breakdown of who is typically responsible for what under FILO terms:

### Shipper's Responsibilities (Free In)

- **Inland Haulage to Port:** Transporting goods from the factory or warehouse to the port of loading.
- **Terminal Handling Charges (THC) at Origin:** Costs associated with handling the cargo within the origin port terminal before loading.
- **Loading Costs:** All expenses for lifting the cargo onto the vessel, including crane charges, stevedoring, and labour.
- **Lashing and Securing:** Ensuring the cargo is properly secured within the vessel to prevent movement and damage during transit.
- **Customs Clearance at Origin:** Preparing and submitting all necessary documentation for export customs.
- **Documentation Fees:** Costs for Bill of Lading (B/L) issuance and other necessary paperwork.

### Carrier's Responsibilities (Liner Out)

- **Ocean Freight:** The cost of transporting the cargo by sea from the port of loading to the port of discharge.
- **Discharge Costs:** All expenses for offloading the cargo from the vessel at the destination port, including crane charges, stevedoring, and labour.
- **Terminal Handling Charges (THC) at Destination:** Costs associated with handling the cargo within the destination port terminal after discharge.

### Consignee's Responsibilities (Post-Discharge)

- **Customs Clearance at Destination:** Preparing and submitting all necessary documentation for import customs.
- **Duties and Taxes:** Payment of any applicable import duties, taxes, and other government levies.
- **Inland Haulage from Port:** Transporting goods from the port of discharge to the final destination warehouse or facility.

Ocean Cargo offers comprehensive [customs compliance services](https://oceancargo.co.uk/services/customs-compliance/) to navigate these complexities, ensuring your goods clear customs efficiently at both ends of the journey.

## When is FILO the Right Choice for Your Business?

FILO terms are particularly common in certain types of cargo and shipping scenarios. Consider FILO if:

- **You have specialised loading requirements:** If your cargo requires specific equipment or expertise for loading (e.g., heavy lift, project cargo, or out-of-gauge items), FILO allows you to manage and control these costs directly, often through a specialist stevedore or your freight forwarder.
- **You have strong relationships with origin port handlers:** If you or your supplier have established, cost-effective arrangements for loading at the origin port, FILO can be more economical than an all-inclusive rate.
- **You are shipping breakbulk cargo:** FILO is frequently used for breakbulk shipments where cargo is not containerised and requires individual handling. For standard [sea freight services](https://oceancargo.co.uk/services/sea-freight/), particularly [FCL](https://oceancargo.co.uk/services/sea-freight "FCL") (Full Container Load) or [LCL](https://oceancargo.co.uk/services/sea-freight "LCL") (Less than Container Load), other terms like [FCL](https://oceancargo.co.uk/services/sea-freight "FCL")/[LCL](https://oceancargo.co.uk/services/sea-freight "LCL") or door-to-door might be more common.
- **You want transparency in cost breakdown:** FILO provides a clear separation of costs, allowing you to see exactly what you're paying for at each stage.

For example, when shipping [excavators and diggers to the UAE](https://oceancargo.co.uk/countries/uae/excavators-diggers-uae), the loading of such heavy machinery often falls under the shipper's responsibility, making FILO a practical choice.

## Advantages and Disadvantages of FILO

### Advantages of FILO

- **Cost Control at Origin:** Shippers can negotiate directly with stevedores or port operators at the origin, potentially securing better rates for loading, lashing, and securing, especially for unique cargo.
- **Flexibility for Specialised Cargo:** Ideal for project cargo or oversized items where standard loading procedures don't apply, allowing for tailored solutions.
- **Clear Cost Separation:** Provides transparency, helping businesses understand the exact components of their freight costs.
- **Reduced Risk at Destination:** Since the carrier handles discharge, the shipper is relieved of the responsibility and associated risks once the vessel arrives at the destination port.

### Disadvantages of FILO

- **Increased Responsibility at Origin:** The shipper bears the full burden of arranging and paying for loading, lashing, and securing, which can be complex and time-consuming without an experienced partner.
- **Potential for Hidden Costs:** If not managed carefully, unexpected charges at the origin port for loading or securing can arise.
- **Requires Expertise:** Navigating port operations and stevedore services at the origin requires a good understanding of local practices and regulations.
- **Less "All-Inclusive":** Unlike door-to-door services, FILO requires more active management from the shipper's side for the "Free In" portion.

Ocean Cargo's expertise in [project logistics to Australia](https://oceancargo.co.uk/countries/australia/wind-turbine-components-blades-nacelles-tower-sections-australia) means we can manage the complexities of specialised loading, even under FILO terms, ensuring smooth execution.

## FILO vs. Other Common Shipping Terms

It's helpful to compare FILO with other prevalent shipping terms to fully grasp its unique position:

- **LIFO (Liner In / Free Out):** The opposite of FILO. Here, the carrier covers loading costs, but the consignee is responsible for discharge costs.
- **LILO (Liner In / Liner Out):** Both loading and discharging costs are included in the freight rate provided by the shipping line. This is often seen as a more "all-inclusive" port-to-port rate.
- **FIO (Free In / Free Out):** Neither loading nor discharging costs are included in the freight rate. Both responsibilities fall to the shipper/consignee, offering maximum control but also maximum responsibility.
- **FIOS (Free In / Out / Stowed):** Similar to FIO, but explicitly states that the cost of stowing the cargo within the vessel is also excluded from the freight rate.

Choosing the right term depends on your specific cargo, trade lane, and operational capabilities. Ocean Cargo provides tailored advice to help you select the most efficient and cost-effective solution for your [road freight](https://oceancargo.co.uk/services/road-freight/), sea freight, or [air freight](https://oceancargo.co.uk/services/air-freight/) needs.

## Navigating FILO with Ocean Cargo

Even with a clear understanding of FILO, managing the "Free In" portion can be challenging, especially when dealing with international ports and unfamiliar regulations. This is where a seasoned freight forwarder like Ocean Cargo becomes an invaluable partner.

Our team of logistics experts can:

- **Advise on Best Terms:** Help you determine if FILO is truly the most advantageous term for your specific shipment, considering all variables.
- **Coordinate Loading:** Arrange and oversee the loading, lashing, and securing of your cargo at the origin port, leveraging our global network of trusted partners.
- **Manage Documentation:** Ensure all necessary paperwork for export and import is meticulously handled, preventing delays.
- **Provide Transparency:** Offer clear, upfront pricing, so you understand all costs associated with your FILO shipment.
- **Offer End-to-End Solutions:** While FILO defines port-to-port responsibilities, Ocean Cargo can provide comprehensive door-to-door services, seamlessly integrating inland haulage, customs, and warehousing around the FILO segment. For instance, our [sea freight services to Canada](https://oceancargo.co.uk/countries/canada/sea-freight-canada) can manage the entire journey, even if the port-to-port segment is FILO.

With Ocean Cargo, you gain a strategic partner committed to simplifying your global supply chain, ensuring your cargo moves efficiently and cost-effectively under any shipping terms.

#### Is FILO an Incoterm?

No, FILO (Free In / Liner Out) is not an official Incoterm. Incoterms (International Commercial Terms) are published by the International Chamber of Commerce (ICC) and define responsibilities for delivery, risk, and costs between buyer and seller. FILO is a common shipping term used by carriers and freight forwarders to specify the inclusion or exclusion of loading and discharging costs within the freight rate, often used in conjunction with Incoterms.

#### Who pays for customs clearance under FILO?

Under FILO terms, the responsibility for [customs clearance](https://oceancargo.co.uk/services/customs-compliance "customs clearance") at both origin (export) and destination (import) typically falls to the shipper and consignee, respectively. The "Free In / Liner Out" specifically refers to the physical loading and discharging costs of the vessel, not customs procedures. Ocean Cargo can assist with all aspects of [customs brokerage for the USA](https://oceancargo.co.uk/countries/usa/customs-brokerage-usa) and other destinations.

#### Is FILO suitable for containerised cargo?

While FILO can technically be applied to containerised cargo, it is less common for standard [FCL](https://oceancargo.co.uk/services/sea-freight "FCL") (Full Container Load) or [LCL](https://oceancargo.co.uk/services/sea-freight "LCL") (Less than Container Load) shipments. For containerised cargo, terms like [FCL](https://oceancargo.co.uk/services/sea-freight "FCL")/[LCL](https://oceancargo.co.uk/services/sea-freight "LCL") or LILO (Liner In / Liner Out) are more frequently used, where the carrier typically includes the costs of loading and discharging the container itself. FILO is more prevalent for breakbulk, project cargo, or situations requiring specialised loading.

#### What is the main difference between FILO and LILO?

The main difference lies in the "In" component. With FILO (Free In / Liner Out), the shipper is responsible for the cost and arrangement of loading the cargo onto the vessel at the origin port. With LILO (Liner In / Liner Out), the shipping line (carrier) is responsible for both loading the cargo onto the vessel at origin and discharging it at the destination port, with both costs typically included in the freight rate.

### Ready to simplify your global logistics?

Get advice and a quote for your next shipment. Contact the Ocean Cargo team to start shipping.

[Freight Quote](https://oceancargo.co.uk/contact-us)

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