Under FIOT terms, who is responsible for covering the cost of transportation?

Under FIOT terms, who is responsible for covering the cost of transportation?

• A. Charterer
• B. Disponent Owner
• C. Shipowner
• D. Master

Answer: (B)

Under FIOT terms, the party who bears the cost of transporting the cargo is the Disponent Owner. This arrangement designates the operator of the voyage—the entity that chartered and controls the vessel in its day-to-day use—as responsible for arranging and paying for the main carriage of the cargo. The shipowner provides the vessel and earns hire, but does not cover the transportation costs, and the master is simply the ship’s captain with no obligation for such charges. In FIOT, the disponent owner (the charterer who runs the voyage) takes on the responsibility for transportation costs, aligning payment with who actually conducts and funds the voyage.

Under FIOT terms, the party who bears the cost of transporting the cargo is the Disponent Owner. This arrangement designates the operator of the voyage—the entity that chartered and controls the vessel in its day-to-day use—as responsible for arranging and paying for the main carriage of the cargo. The shipowner provides the vessel and earns hire, but does not cover the transportation costs, and the master is simply the ship’s captain with no obligation for such charges. In FIOT, the disponent owner (the charterer who runs the voyage) takes on the responsibility for transportation costs, aligning payment with who actually conducts and funds the voyage.