FIO and FIOS: Meaning in Chartering
FIO and FIOS are short terms in a voyage charter. They say who pays for loading and discharging the cargo, and, with the S, for the stowing.
What FIO means
FIO is "free in and out". The freight covers the sea carriage only. The charterer pays for loading the cargo into the ship and for discharging it, and arranges the labour, the equipment and the port services for it. The ship operator is "free" of these costs.
What the S adds
FIOS is "free in and out, stowed". The charterer also pays for stowing the cargo in the holds, that is, placing it so that it rides safely. FIOST adds "trimmed": the cargo is levelled in the hold. In bulk cargo, a ship usually loads by grab or by conveyor and the cargo is trimmed where needed, so both words matter in a cargo of coal, ore or grain.
Liner terms for comparison
In "liner terms" or "gross terms" the ship operator pays loading and discharging, and the freight is higher for it. In "FI", "FO" and "FIO" the costs fall to the charterer in part or in full. The terms are written next to the freight rate, for example "freight idea per tonne FIOS", so that the offers can be compared on the same basis.
Why the term changes the offer
A freight that is FIO is not the same as a freight on liner terms, even if the figure looks lower. A charterer should add the port costs for loading and discharging, and a ship operator should check that the ship can load and discharge in the port in question, with its own gear or the port's. Compare offers on the same terms.
Related terms
The rest of the time in port is governed by laytime, demurrage and the notice of readiness. For the whole contract see the voyage charter.
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Related guides
More in glossary
- Time Charter
- Trip Time Charter
- Contract of Affreightment (COA)
- Time Charter vs Voyage Charter
- Laycan
- Notice of Readiness
- Charterer
- Shipowner, ship operator, disponent owner
- Ship broker
- Ship fixing and fixture
- Bulk carrier
- Deadweight tonnage (DWT)
- Bill of lading
- Baltic Dry Index
- Lien
- Off-hire
- Bunkers
- Cancelling date
- Ton-mile
- Statement of facts
- Letter of indemnity
- Ballast voyage
- Dead freight
- Lighterage
- Stem
- Subjects
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