Question

Topic 11 LINER TERMS Delinition b-Types, relation with Incoterms, Fees considerations d Application example of liner Terms Inclusion
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Answer 1

Liner terms refer to conditions under which a shipping company will transport goods. It includes the amount payable for freight the cost both for loading and discharge of the cargo from the vessel. When one ship liner terms, the carrier is responsible for the loading and unloading of the cargo. For example, on shipping liner-in, free-out, then the carrier is responsible for loading, and the shipper is responsible for unloading. In free-in, liner-out, shipper pays for loading, and the carrier pays for the unloading.

Types

FILO (Free In Liner Out):

The cost of loading the vessel at the port of loading are not included (Free In) and the cost of unloading the vessel at the port of destination are included (Liner Out).

FIO (Free In Out):

The cost of loading the vessel at the port loading and the cost of unloading the vessel at the port of destination are not included.

FIOS (Free In Out Stowed):

How FIO and additional are the stowage cost in the vessel excluded.

FIOST (Free In Out Stowed Trimmed):

How FIOS and additional are the trimming cost in the vessel excluded.

FIOT (Free In Out Trimmed):

How FIOS but includes the trimming cost in the vessel.

FLT (Full Liner Terms):

The cost of loading the vessel at the port loading, the stowage- and the trimming costs are included. The cost of unloading the vessel at the port of destination are included.

LIFO (Liner In Free Out):

The cost of loading the vessel at the port loading are included (Liner In) and the cost of unloading the vessel at the port of destination are not included (Free Out).

Liner Terms and Incoterms

Liner terms deal with port passage and are applicable to shipping companies.

They include within the marine freight, costs incurred "from under ship's tackle", docking and on board.

Liner terms are economical.

The maritime company costs include transport costs. The next stakeholder, according to the chosen Incoterms, will have to pay them and thus factor the costs into the price.

Liner Terms are related to the transport contract.

Some Incoterms variations, like, for example, "FOB stowed," are directly related to the liner Terms.

Port operations include dock transport, loading, unloading and placement under ship's tackle. We also have on-board slinging, rigging and hoisting, unloading and docking.

The number of possibilities will therefore be very important.Liner Terms are very complex and differ from one port to another, from one country to another, and may even be regulated by the state. It is recommended you contact your freight forwarder for additional guidance.

Fee

Detention penalties/detention fee (DET for import/DTS for export):

import: imposed for excess usage container since its removal from the terminal (full) until the return of empty containers at the port, minus free days. Export: counted from pick-up empty to removal to terminal (full) minus free days. This fee is applicable to all containers that remain in the customers possession longer than the agreed free time. Not applicable for shipper owned containers.

Electronic Data Interchange Fee (EDI):

this fee is generated when the carrier arranges submission of electronic data, on behalf of the customer, to ports / Customs or other Government entities. The fee is applied based upon the customers request. Exception: In Greece and Israel, this fee is mandatory and will be applied to all shipments. Applied per Bill of Lading (B/L) / Transport Document (TPdoc).

Emergency Risk Surcharge (ERS):

this fee covers additional costs faced by the carrier when moving cargo in dangerous regions including those that are threatened by hazards, violence or piracy.The charge covers extra bunker cost (due to longer routing and/or faster sailing), insurance coverage, and additional security measures. The fee will be applied to bookings that are from, to or transited through the affected areas.

Freight Collection Fee (CLF):

the fee applied when the carrier:

Collects freight charges locally,

Collects freight charges in a local currency.

The fee is applied to all shipments and is set by local authorities which means this fee may apply to both import or export shipments.
Since this fee is mandated by local authorities, the charge may take the form of a fixed fee or a percentage of the total freight.
Applied per Bill of Lading (B/L) / Transport Document (TPdoc) or Applied per container or Applied as a percentage of freight.