A term in pricing which indicates that the charterer of the ship will be responsible for the value of loading products from the ship

FO (Free out) It means the ship-owner bears the loading expenses but does not bear the unloading expenses.

Free Out (FO) is the international shipping term in ocean shipping that means that the consignee (receiver ) is accountable for the cost of unloading cargo from the ship at the destination.

In other words, it is cargo rate eligibility that suggests the offered port-to-port rate includes costs for loading of freight on the ship at the port of origin although not for the offloading in the port of destination. This ‘free’ means “not included” and not “inclusive of” (as in free on board). It’s not an Incoterm and might have different meanings in different countries.

Free Out (FO) is a term used in international trade to indicate that the seller is responsible for delivering the goods to a specified location, but the buyer is responsible for paying the transportation costs.

Under FO terms, the seller is responsible for arranging and paying for the transportation of the goods to the specified location, but the buyer is responsible for paying the transportation costs. This can include costs such as shipping fees, insurance, and other related expenses.

FO terms are often used when the buyer and seller are located in different countries and the goods are being shipped internationally. They can help to ensure that the buyer is aware of the costs associated with transporting the goods and can plan accordingly. It is important for buyers to be aware of the FO terms of a transaction, as they may need to pay additional fees when the goods are delivered.

Free Out (FO) is an Incoterm (International Commercial Terms) used in international trade to define the terms of a sale between a buyer and a seller. It is used to specify the responsibilities of the buyer and the seller in relation to the transportation of goods from the seller’s location to the buyer’s location.

In the context of Amazon, FO may be used in the sale of goods on the Amazon marketplace or for transactions conducted directly with Amazon. It is typically used when the buyer is responsible for arranging and paying for the transportation of goods from the seller’s location to the buyer’s location.

Under the FO Incoterm, the seller is responsible for the following:

• Cost: The seller is responsible for paying the cost of the goods, including any taxes or duties that may be due.
• Loading: The seller is responsible for loading the goods onto the transport vehicle at their location.

The buyer is responsible for the following:

• Insurance: The buyer is responsible for purchasing and maintaining insurance on the goods until they are delivered to the buyer’s location. This is meant to protect against any loss or damage to the goods while they are in transit.
• Freight: The buyer is responsible for arranging and paying for the transportation of the goods from the seller’s location to the buyer’s location. This includes any associated costs, such as shipping fees and port charges.
• Unloading: The buyer is responsible for unloading the goods from the transport vehicle when they arrive at their location.
• Clearance: The buyer is responsible for clearing the goods through customs at their location.
• Payment: The buyer is responsible for paying the agreed-upon price for the goods, as well as any additional costs incurred under the FO Incoterm (such as insurance and freight charges).

There are a few key advantages to using FO as an Incoterm. One of the main advantages is that it shifts the responsibility for the transportation of goods from the seller to the buyer. This can be especially useful in situations where the buyer has the resources or expertise to handle the transportation of goods themselves.

Another advantage of FO is that it provides a level of protection for the goods while they are in transit. The buyer is responsible for purchasing and maintaining insurance on the goods, which can provide a level of protection against loss or damage.

There are also a few potential drawbacks to using FO as an Incoterm. One of the main drawbacks is that it may increase the overall cost of the transaction for the buyer. The buyer is responsible for paying for the transportation of the goods and for purchasing and maintaining insurance on the goods, which can add to the overall cost of the sale. Additionally, the buyer is responsible for unloading the goods and clearing them through customs at their location, which can also incur additional costs.

In summary, Free Out (FO) is an Incoterm used in international trade to define the terms of a sale between a buyer and a seller. In

the context of Amazon, FO may be used in the sale of goods on the Amazon marketplace or for transactions conducted directly with Amazon. Under the FO Incoterm, the seller is responsible for the cost and loading of the goods, while the buyer is responsible for insurance, freight, unloading the goods, and clearing them through customs at their location. There are a few key advantages to using FO, such as shifting the responsibility for the transportation of goods from the seller to the buyer and providing a level of protection for the goods while they are in transit. However, there are also a few potential drawbacks, such as the possibility of increased costs for the buyer and the potential for additional responsibilities for the buyer in terms of insurance, freight, unloading, and customs clearance.

It is important for buyers and sellers to carefully consider which Incoterm is most appropriate for their needs when conducting a sale on Amazon or any other platform. Different Incoterms have different terms and responsibilities, and it is important to choose the one that best meets the needs of both parties. It is also important to carefully review and understand the terms and conditions of any Incoterm before agreeing to it in a sale, to ensure that both parties fully understand their responsibilities and obligations under the terms of the sale.