Who pays to load and discharge
| Term | Short | What it means | Who pays |
|---|---|---|---|
| Liner In / Liner Out | LILO | The freight covers loading at origin and discharge at destination. The simplest arrangement and the usual default in container liner trades. | Carrier loads and discharges |
| Free In / Free Out | FIFO | The freight covers the sea leg only. The shipper arranges and pays loading; the receiver arranges and pays discharge. Common in bulk and breakbulk. | Merchant both ends |
| Free In / Liner Out | FILO | The shipper pays to load; the carrier’s freight covers discharge. | Merchant loads, carrier discharges |
| Liner In / Free Out | LIFO | The carrier’s freight covers loading; the receiver pays to discharge. | Carrier loads, merchant discharges |
| Free In and Stowed | FIS | As Free In, and the shipper also pays for stowing the cargo in the hold — not merely lifting it aboard. | Merchant, including stowage |
| Free In, Stowed and Trimmed | FIST | As FIS with trimming added, levelling a bulk cargo across the hold. Standard in dry bulk. | Merchant, including stowage and trimming |
Charges you will see on the invoice
THC — Terminal Handling Charge
The terminal’s charge for moving the container between quay and yard. Levied at both ends and quoted separately from freight.
BAF — Bunker Adjustment Factor
A surcharge tracking fuel price movement, so the base freight need not be reopened every time bunkers move.
CAF — Currency Adjustment Factor
A surcharge covering exchange-rate movement between the currency of the tariff and the currency of the carrier’s costs.
ISPS — International Ship and Port Facility Security charge
Recovers the cost of security measures required under the ISPS Code.
D&D — Demurrage and Detention
Demurrage runs while a container sits inside the terminal beyond its free time; detention runs while the box is outside the terminal and not yet returned. Two different clocks, frequently confused.
Questions
- What is the difference between demurrage and detention?
- Demurrage runs while a container sits inside the terminal beyond its free time. Detention runs while the container is outside the terminal and has not yet been returned. Two separate clocks, often billed together and frequently confused.
- What does FIFO mean in shipping?
- Free In / Free Out: the freight covers the sea leg only. The shipper arranges and pays for loading, the receiver for discharge. It is unrelated to the inventory method of the same initials.
- Are liner terms the same as Incoterms?
- No. Liner terms sit between the merchant and the carrier and decide who pays for loading and discharge. Incoterms sit between seller and buyer and decide where delivery and risk pass. A shipment has both.
Common commercial meanings. The wording of your own booking note, bill of lading or charter party governs, and usage varies between trades.
Provided for convenience and general information only.Figures, definitions and descriptions on these pages are compiled from publicly available sources — published industry standards, official code registers and carriers' own published specifications — and are nominal: actual equipment, regulations and commercial terms vary by manufacturer, carrier, jurisdiction and contract, and change over time. FrateZone is not the issuing authority for any of it, does not warrant that any figure here is correct, current or complete, and makes no representation that a source has not changed since it was read. Where a specification belongs to a specific physical unit or a specific contract — a container's certified plate, an airline's tariff, the wording of your own sale agreement — that document governs, not this page. FrateZone accepts no liability for any error or omission here, nor for any operational, commercial, financial or legal decision taken in reliance on it. Verify against the authoritative source before you act.