Which statement describes Free in & out (FIO) terms?

Which statement describes Free in & out (FIO) terms?

• A. Owner does not bear the cost of loading or discharging
• B. Owner bears the cost of loading but not discharging
• C. Owner bears the cost of discharging but not loading
• D. Owner bears both loading and discharging costs

Answer: (A)

Free In and Out means the costs of loading and discharging cargo are not borne by the shipowner. The charterer or cargo owner covers stevedoring and port-handling expenses, while the vessel owner is responsible mainly for the voyage and the ship itself. So the statement that the owner does not bear the cost of loading or discharging best describes FIO. The other options imply the owner would pay for some or all of these loading/discharging costs, which contradicts this term.

Free In and Out means the costs of loading and discharging cargo are not borne by the shipowner. The charterer or cargo owner covers stevedoring and port-handling expenses, while the vessel owner is responsible mainly for the voyage and the ship itself. So the statement that the owner does not bear the cost of loading or discharging best describes FIO. The other options imply the owner would pay for some or all of these loading/discharging costs, which contradicts this term.