Liner terms

Liner Terms / Conditions de ligne

The liner terms define the handling operations that are included in the freight rate charged by the shipping company.

Common variants

• Liner Terms (port to port): freight includes loading at the port of embarkation and unloading at the port of destination
• FIO (Free In and Out): freight excludes loading and unloading, at the expense of the shipper/receiver
• FIOS (Free In, Out and Stowed): same as FIO, plus stowage is excluded
• FIOST (Free In, Out, Stowed and Trimmed): same as FIOS, plus cargo leveling is excluded
• LIFO (Liner In, Free Out): loading included, unloading excluded

Financial impact

Liner terms determine who pays for port handling. They have a direct impact on the total cost and must be consistent with the chosen Incoterm.

Relationship with Incoterms

In FOB and CFR/CIF, the distribution of handling costs depends on the agreed liner terms. A misunderstanding between liner terms and Incoterm is a frequent source of disputes.

Tip

Always specify the liner terms in the transport contract and ensure their consistency with the Incoterm of the sales contract.