Sat, Oct

Which party usually bears the costs of loading and discharging a dry cargo ship?

MCA Oral Exam Questions

(1) In the liner trades (e. g. container and ro/ro shipping), it is usually the shipowner, since he either uses his own cargo-handling equipment and labour, or hires it. 

Freight is usually payable on a "liner terms" or "gross terms" basis and covers loading and discharge costs. (2) Under a voyage charter it will depend on the charterparty terms. In the dry bulk trades the usual agreement is "free in and out" (FIO), which means some party other than the shipowner (e. g. the charterer, shipper or consignee) bears the cargo-handling costs, making them "free" to the shipowner. In some cases terms are "liner in/free out" (LIFO) or "free in/liner out" (FILO) depending on the agreed arrangements at load and discharge ports. In the tanker trades the shipowner bears the cost of pumping cargo from the ship, while some party other than the shipowner bears the loading cost.