What is the meaning of Free In(FI), Free out(FO), Free In & out (FIO) & Free in and out stowed(FIOS), really not able to understand what does that mean & who is responsible for this cost? These rules FIO and FIOS do not correspond to Incoterms® 2010 but to the conditions of sea freight quoted by the shipping companies. Whenever a shipping company quotes a freight rate you should ask what does the rate includes in terms of loading and stowing, at the port of loading, and in terms of un-stowing ad un-loading at the port of discharge. Normally, as a general practice worldwide, the conditions of sea freight are as follows: 1 FAS (Free alongside): this clause has nothing to share with homonymous FAS of Incoterms® 2010. It is and just homonymous as I say, but while FAS in Incoterms® 2010 shows the seller’s obligation under the sale contract, FAS in this freight rate shows the shipping company’s obligations under the contract of transport. Unfortunately, they use the same expression, although pertaining to due different contracts. The one referring to the freight rate means that the rate quote by the shipping company includes, along with the mere freight of transport, also loading and stowing operations at the port of loading and, generally, un-stowing and un-loading at the port of discharge (unless at the port of discharge the conditions are different from those quoted in a port of loading). 2 PAL (PALAN): this rate, better known as “Liners Terms”, means that at the port of loading, the loading operations is up to the shipper, while stowing and transport is a shipping company’s obligation. At the port of discharge the freight rates includes (unless different praxis): un-stowing but not un-loading, charges, and THC, which are one of the consignee’s obligations. 3 FIO/FIOS that is Free in (Free) Out and Free I Out Stowed; under this freight rate the shipping companies obligations limit to the mere transport, leading on the other obligations (loading, stowing and un-stowing/un-loading) respectively of the shipper or the consignee. Maurizio Favaro. International Chamber of Commerce of Rome. Member of Commercial Law and Practice Commission on Incoterms® 2010.

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