Liner terms (LI/LO) - qualification to a freight rate which signifies that it consists of the ocean carriage and the cost of cargo handling at the loading and discharging ports according to the custom of those ports. if FI, then the shipper is responsible for the coast of loading goods onto a vessel for the international shipping overseas.įree Out (FO) is the international shipping term in ocean freight that indicates that the consignee (recipient) is responsible for the cost of unloading cargo from the vessel at the destination.įree In and Out (FIO) is the international shipping term used in the ocean freight industry means that the carrier is NOT responsible for the cost of loading and unloading gods onto/from the vessel. Conditions of carriage for departure / arrival time - the cost of transportation includes services for sending from / to CY (freight, loading / unloading from the vessel, placing on the CY, does NOT include underwriting services / shipments to / from CY) įree In (FI) - in the international ocean freight terminology the word “Free” means “Not included”. Place of storage containers before / after their further shipment. The only vessel demurrage that may apply is at the destination during the unloading process.Free In (FI) / Free Out (FO) Conditions of CarriageĬY (Container Yard) Container Terminal - 1. In the event where additional berthing time is required at the port of loading, the shipowner must settle this with the port operator. Therefore, they will not be able to charge any party in the charter agreement with vessel demurrage, as they are responsible for the time taken to complete the loading activities. Under the LIFO shipping term, the shipowner is responsible for loading the bulk cargo onto the vessel. How Vessel Demurrage Works With the LIFO Shipping Term They may use their own equipment or use a third party service provider for this activity. Unloading – The consignee is responsible for the unloading of bulk cargo from the vessel at the discharge port.Accessorial charges such as pilotage fees, channel lighting and berthing are also accounted for by the owner of the vessel. Transport – Under the FILO liner timer, the shipowner is also obligated to transport the bulk cargo from the port of loading to the port of discharge.Activities like shoveling or spout trimming are common ways to even out the cargo on a bulk carrier. This is to ensure that the ship is stable during voyage and easy to unload upon arrival. Trimming – To ensure an even load, the shipowner must also ensure that the bulk cargo is appropriately trimmed.The actual method of stowing depends on the type of bulk cargo that is being shipped. Stowage types include drums, bags, or even cases. Stowage – Safe stowing is another activity of ensuring that the cargo is properly packed or stored within a ship’s hold.They may use bulker cranes located on the vessel or external equipment from the quay. Loading – With the LIFO shipping term, the shipowner’s responsibility starts with arranging loading of the break bulk cargo into the vessel.It needs to be made available in a way that the shipowner is able to conduct the loading activities. Cargo Readiness – The shipper must ensure that the break bulk cargo is ready and available at the time and location of loading.Unless otherwise indicated in the contract, the responsibilities under the LIFO terms are as follows. The cargo owner and the shipowner enter a charter party, which is a contract that clearly outlines the responsibilities between all involved parties. In this article, we’ll be taking a closer look at the LIFO shipping term and who is responsible for each individual activity. Here’s a quick summary of the responsibilities between all parties for LIFO terms. ![]() LIFO stands for Liner In Free Out and stipulates that the shipowner is responsible for the loading, stowing, trimming, and transportation of the bulk cargo, whereas the consignee is responsible for the unloading activities. The liner term we’ll be exploring in this article is LIFO. These shipping terms clearly indicate the responsibilities of the shipper, consignee and shipowner. ![]() There are standardized liner terms when it comes to transporting bulk cargo across the ocean.
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