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Glossary
Consignee
Glossary
FIOS (Free In and Out Stowed)
Definition
FIOS (Free In and Out Stowed) remains a relevant shipping term that specifies a freight arrangement where the shipper bears the costs and responsibilities for loading, stowing, and discharging the cargo. Conversely, the consignee is accountable for the transportation expenses from the port of origin to the port of destination. This collaborative approach to cost-sharing in cargo handling can lead to more adaptable and economical shipping solutions.
— sennder Team
FAQ
With FIOS, the shipper assumes the costs of loading and stowing the cargo at the port of origin and discharging it at the port of destination. The consignee manages the transportation expenses between the two ports.
FIOS is distinct in how it distributes responsibilities and costs between the shipper and consignee. Unlike FIOS, other terms like FOB (Free on Board) and CIF (Cost, Insurance, and Freight) have different allocations of obligations and expenses.
The use of FIOS provides several advantages:
-Flexibility: The shared responsibility model under FIOS can offer more adaptable shipping agreements.
-Cost-effectiveness: Both parties may realize savings by splitting certain costs, unlike other terms that might place the financial burden solely on one entity.
-Customization: Shipping logistics can be customized to the specific needs of the shipper and consignee with FIOS, making it a tailored solution.
FIOS is chosen for arrangements where both the shipper and consignee are open to sharing responsibilities and costs. It is especially useful when there is a mutual trust and a history of collaboration between the parties, enabling them to negotiate effective shipping logistics.
Example or usage in road freight logistics:
A manufacturer in Germany agrees to send goods to a retailer in Spain under FIOS terms. The manufacturer is responsible for the costs associated with loading and stowing the merchandise onto the truck. The retailer in Spain takes on the discharge costs at their warehouse and the transport costs from Germany to Spain. This cost-sharing approach facilitates a more flexible and cost-efficient shipping deal.