Free out

Free out is a freight basis under which the owner pays for and is responsible for loading, while discharge is free of cost to the owner because the charterer or receiver pays to land the cargo. The freight therefore includes loading but not discharge. It is the mirror of ‘free in’, where the shipper pays loading and the owner pays discharge, and it sits in the same family as FIO, FIOST, and liner terms. Free out is common where the receiver runs the discharge port operation and wants the discharge cost outside the freight quoted by the owner.