What Is Free In, Liner Out (FILO)?

3PL Glossary
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Free In, Liner Out (FILO)

Free In, Liner Out (FILO) Definition

Free In, Liner Out (FILO) is a shipping term that means the seller is responsible for delivering goods to the port, and the buyer assumes responsibility for unloading the cargo and removing the container’s liner at the destination port.

Free In, Liner Out (FILO) Meaning

FILO is a shipping arrangement that allocates specific responsibilities between the buyer and seller. Under this agreement, the seller handles the delivery of the cargo to the port, but the buyer is responsible for the unloading and removing of the liner from the container once the goods have arrived at the destination. It helps lower shipping costs by transferring some of the logistical tasks to the buyer.

FILO works by splitting the logistics responsibilities between the seller and the buyer, where the seller delivers goods to the port but the buyer takes care of unloading and liner removal.

This arrangement can lower the seller's shipping costs and give buyers more control over the logistics process at the destination port. By offering FILO, your business can reduce expenses and provide a cost-effective option for customers handling their own unloading.

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Buske Logistics is a Top 40 3PL with over 35 warehouses across North America, specializing in warehousing, transportation, and value-added services. We provide tailored logistics solutions serving major Fortune 500 companies.

FILO is an important shipping term because it allows businesses to save on transport costs by shifting some responsibilities, like unloading and handling liners, to the buyer. This can streamline the shipping process, reduce operational costs, and speed up delivery.

For instance, in international trade, FILO can help the seller minimize costs by not having to cover unloading expenses at the destination port. This arrangement benefits both parties by clearly defining their respective duties and reducing unnecessary costs.

FAQs

What is the difference between FILO and other shipping terms like FOB?
Is FILO commonly used for all types of shipments?
What are the benefits of FILO for businesses?