What Are the Terms Of Transportation for Breakbulk Shipping

Jan 19, 2024

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1. Liner Terms F.L.T (Full Liner Terms)

Pipe loading and unloading. The shipowner is in charge of loading and unloading. If heavy items cannot be operated by shore cranes and must be lifted simultaneously, the shipowner will reimburse the crane costs. Generally applicable to machinery, equipment, vehicles, and so on.

 

2. F.I.O terms (Free In & Out)

Regardless of whether you're loading or unloading. Loading and unloading are not the shipowner's responsibility, and the costs of doing so are excluded. The shipowner is solely responsible for collecting and delivering the goods in the cabin. The charterer hires stevedores at the loading and unloading port and bears the associated costs. Mainly suitable for bulk cargo. such as cement, fertilizer, ore. Port loading and unloading rates are generally required.

 

3.F.I.L.O Terms (Free In Liner Out)

It doesn't matter whether it's installed or unloaded. The shipowner is responsible for unloading, not loading. According to this clause, the ship owner is only responsible for receiving the cargo in the hold at the loading port, and the person responsible for the loading costs is responsible for them, whereas the ship owner is responsible for the costs incurred at the unloading port. This clause applies primarily to general cargo, such as steel products.


4. L.I.F.O (Liner In Free Out)

The tube was loaded and unloaded. The shipowner is only responsible for loading and not unloading. According to this clause, the ship owner pays the loading charges at the loading port and is only responsible for delivering the cargo in the hold to the unloading port, while the charterer bears the unloading charges. This clause is very rarely used.

 

5. F.I.O.S.T (Free In & Out, Stowed, Trimmed)

Regardless of loading, unloading, or trimming charges. This clause completely contradicts the liner clause. The shipowner is not responsible for all costs associated with loading and unloading. The charterer is responsible for all hired stevedores as well as any related loading and unloading costs. Under this clause, the charterer is responsible for the lashing fees and other costs associated with shipping large cargoes. The lessee should also bear responsibility for the lashing materials. However, to avoid unnecessary disputes, when transporting large cargo, the word "LASHED" should be included in the contract to indicate that the ship owner is not liable for the lashing fees. Similarly, if the words "DUNNAGES" are added after the preceding provisions,it means that the ship owner is not responsible for the dunnage costs in addition to the above expenses.

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