Glossary
Free Out (FO)
An incoterm where the seller covers the costs and risks of loading goods onto the vessel, but the buyer is responsible for the unloading process.
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What does Free Out (FO) refer to?
Free Out (FO) is a shipping term used in a charter party agreement or transportation contract to define the division of responsibilities between the shipowner and the charterer regarding cargo discharge at the destination port. Under FO terms, the shipowner is responsible for covering the costs and arrangements for unloading the cargo from the vessel and transferring it to the dock or quay (free out). The charterer is then responsible for the subsequent logistics, such as customs clearance and on-carriage to the final destination.
FO terms provide the charterer with more control over the cargo’s discharge and onward transportation, while the shipowner is responsible for the initial unloading process.
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