In a Gross In, Free Out arrangement, who loads and who discharges?

• A. Owner load, charterer discharged
• B. Charterer load, owner discharged
• C. Both load and discharge by Charterer
• D. Both by Owner

Answer: (A)

In a Gross In, Free Out setup, the loading of cargo into the vessel is borne by the shipowner, while the unloading (discharging) is borne by the charterer. The term “in” refers to loading, and “out” to discharging. “Gross” indicates the owner covers the loading costs, and “Free Out” means the charterer covers and handles the unloading. So the owner arranges and pays for loading, and the charterer arranges and pays for discharging. If the cargo were loaded by the charterer or if both actions were on the charterer or on the owner only, that would contradict the defined cost allocation of Gross In, Free Out.