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Liner In Free Out (LIFO) is a shipping term where the shipping line is responsible for loading cargo onto the vessel (liner in), but the shipper or consignee is responsible for unloading the cargo at the destination port (free out).
Liner In Free Out (LIFO) refers to a shipping agreement where the shipping line covers the cost and responsibility of loading goods onto the vessel but does not include the unloading at the destination. This means the customer or the consignee must handle the unloading process at the destination port. This arrangement can be beneficial in cases where the consignee prefers to manage the unloading process themselves or if they have the necessary infrastructure to do so.
Liner In Free Out (LIFO) works by shifting the responsibility for unloading to the consignee while the shipping line only handles the loading process. This benefits your business by reducing shipping costs, especially if you have the infrastructure to handle unloading on your own. It allows for more control over the unloading process and can lead to savings if the consignee can manage the unloading efficiently.
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.
Liner In Free Out (LIFO) is important because it allows businesses to save on shipping costs by transferring the responsibility for unloading to the consignee, which can reduce the overall freight charges. By keeping the unloading costs separate, it also provides flexibility for businesses with different unloading capabilities at the destination port.
For example, a company using LIFO might handle unloading itself to save on port costs, especially if it has a warehouse or distribution center near the port. This can make the logistics process more cost-effective and better tailored to the company's specific operational needs.
