Legal Definitions - FIOS

FIOS stands for Free In and Out Stowed.

This is a shipping term commonly found in a bill of lading, which is a document issued by a carrier to a shipper acknowledging receipt of cargo for shipment. When a contract specifies FIOS terms, it means that the shipper (the party sending the goods) is fully responsible for arranging and paying for all costs and labor associated with loading the cargo onto the vessel, properly stowing it within the vessel's holds, and then unloading it at the destination port. In essence, the carrier provides the vessel for transport but is "free" from the costs and responsibilities of the physical handling of the cargo at both the origin and destination ports.

Here are some examples to illustrate how FIOS terms apply:

• Example 1: Export of Heavy Industrial Equipment

  A German manufacturing company sells a massive, custom-built stamping press to a factory in South Korea. Under a FIOS agreement, the German manufacturer (the shipper) must hire specialized crane operators and rigging crews to safely lift the multi-ton press onto the cargo ship in Hamburg. They are also responsible for ensuring the press is securely braced and stowed within the ship's hold to prevent any movement during the ocean voyage. Upon arrival in Busan, South Korea, the German manufacturer must again arrange and pay for the necessary heavy-lift equipment and personnel to unload the press from the vessel and place it onto a waiting transport vehicle. The shipping line's responsibility is limited to transporting the vessel itself between the two ports.

  This example demonstrates FIOS because the shipper manages and pays for the complex loading, stowing, and unloading of large, heavy cargo at both ends of the journey.

• Example 2: Bulk Agricultural Commodity Shipment

  An agricultural cooperative in Brazil sells a large volume of soybeans to a buyer in China. If the contract specifies FIOS terms, the Brazilian cooperative (the shipper) is responsible for ensuring the soybeans are loaded from their silos onto the bulk carrier at the Brazilian port, properly trimmed, and stowed evenly across the ship's holds. When the vessel reaches the Chinese port, the cooperative must then arrange for the necessary equipment, such as pneumatic unloaders or conveyor systems, and the labor to discharge the soybeans from the ship. The carrier simply transports the bulk cargo across the ocean.

  This illustrates FIOS in the context of bulk commodities, where the shipper handles all aspects of specialized loading and unloading processes.

• Example 3: Transport of Oversized Wind Turbine Components

  A company specializing in renewable energy projects needs to transport several oversized wind turbine blades and tower sections from a manufacturing plant in Denmark to a new wind farm site in Scotland. With a FIOS agreement, the energy company (the shipper) is tasked with contracting heavy-lift specialists to meticulously load these long and delicate components onto a specialized heavy-lift vessel in Denmark. They must also ensure the components are carefully secured and stowed to prevent damage during transit. At the Scottish port, the energy company is responsible for arranging the specialized cranes and transport vehicles required to safely unload the components from the ship and move them to the project site.

  This example highlights the shipper's responsibility for managing the intricate and specialized handling, securing, and stowing of challenging, oversized cargo under FIOS terms.