Nautical Term: FIO
Definition of FIO
Free In/Out (FIO) refers to freight arrangements where the sea freight costs are included in the contract. However, the costs related to the loading and discharging of cargo are not included in the FIO arrangement. Thus, the charterer bears the responsibility and cost of loading and discharging the cargo.
For instance, in a contract for the shipment of machinery components from China to the United States, the seller and buyer agree to the FIO arrangement for the sea freight. Nevertheless, the buyer is obliged to pay for the cost of loading and discharging the cargo at the origin and destination ports.
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