Which contract term means the owner bears the cost of loading but not discharging?

Which contract term means the owner bears the cost of loading but not discharging?

• A. Free in & out
• B. Free in linear out
• C. Linear in free out
• D. Linear in & out

Answer: (B)

In these contract terms, in refers to loading the cargo onto the vessel and out refers to discharging it ashore. The word Free before in means loading costs are on the shipowner’s account, so the owner pays for loading. The term liner out (often written as liner out) indicates that the discharge cost is not covered by the owner and is placed on the party responsible for discharge. Put together, Free in liner out means the owner bears the loading cost but not the discharge cost. The other combinations would shift who pays for loading or discharging in different ways.

In these contract terms, in refers to loading the cargo onto the vessel and out refers to discharging it ashore. The word Free before in means loading costs are on the shipowner’s account, so the owner pays for loading. The term liner out (often written as liner out) indicates that the discharge cost is not covered by the owner and is placed on the party responsible for discharge. Put together, Free in liner out means the owner bears the loading cost but not the discharge cost. The other combinations would shift who pays for loading or discharging in different ways.