Free In / Liner Out (FILO) is a shipping term that refers to a freight rate that excludes the cost of loading goods onto a vessel. Under a FILO arrangement, the shipper is responsible for arranging and paying for the costs associated with both loading and discharging the cargo. The freight rate only covers the transport of the goods from the port of origin to the port of destination. This structure gives the shipper the flexibility to handle the entire process, including loading and unloading, while the carrier focuses on the transportation aspect. It allows the shipper to have greater control over logistics and potentially reduce costs by choosing their preferred loading and unloading methods. The FILO structure helps to establish clear responsibilities and cost allocations between the shipper and the carrier, ensuring transparency and efficient coordination in the shipping process.

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