SHIPPING GLOSSARY

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F

F.&.D.: Freight and demurrage.

F.C.L.: Full container load, full car load.

F.c.s.: Free of capture and seizure.

f.c.s.r.c.c.: Free of capture, seizure, riots and civil commotions.

F.i.b.: Free in bunkers; free into barge.

F.o.d.: Free of damage

F.P.A.: Free of Particular Average (Marine Insurance Term). A term used in marine insurance policies to indicate that while the underwriter is unwilling to assume liability for ordinary partial losses due to the peculiar qualities of the particular article or to its form of package, he is willing to bear partial losses, the direct result of stranding, sinking, burning, collision, or other named peril

F.P.A.A.C. F.p.a. (A.C.): Free of Particular Average, American Conditions- (Marine Insurance Term). The American form of clause commonly used, as distinguished from that used by the English underwriters. Under the American clause the underwriter does not assume responsibility for partial losses unless caused by stranding, sinking, burning or collision with another vessel whereas under the English clause, the underwriter assumes responsibility for partial losses if the vessel be stranded, sunk, burnt or in collision even though such an event did not actually cause the damage suffered by the goods. Conditions (See F.P.A.A.C.).

FAK: Freight All Kinds - uniform airline charging scale applying to a number of commodities; as opposed to SCR (Specific Commodity Rate) applying to one commodity only.

FAS (free alongside ship): Seller is responsible for inland freight costs until goods are located alongside the vessel/aircraft for loading. Buyer is responsible for loading costs, ocean /air freight and marine/air insurance.

Fathom: (Nautical) Conversion equivalents: 6 feet; 1.83 meters.

FBY: Free buyers yard: As FOT but also includes delivery to buyer’s premises.

FCA: Free Carrier - One of the thirteen Incoterms and one of three 'F' terms.

This is the main term for handing over goods for carriage and can be used irrespective of the mode of transport.

The seller fulfills his obligation to deliver when he has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named point. If no point has been indicated the seller may choose within the range stipulated where the carrier should take charge of the goods.

FEU: Forty foot equivalent

FIATA: International Federation of Freight Forwarders Associations.

Fifth Freedom Flight: Where cargo is carried by an airline between two countries in neither of which it is based.

FILO: Free in, liner out: Seafreight which the shipper pays load costs and the carrier pays discharge costs.

FIO: Free in and out: Freight booked FIO includes the seafreight, but not loading and discharging costs.

FIOS: Free in and out and stowed: As FIO but includes stowage costs.

FIOT: Free in and out and trimmed: As above but includes trimming, e.g. the levelling out of bulk cargoes.

First of Exchange: First or principal copy of a bill of exchange to be presented and honoured the other copies then being automatically cancelled.

FIT: eration of International Traders

Flag Carrier: An airline of one national registry whose government gives it partial or total monopoly over international routes.

Flat: This is a piece of equipment equivalent to the bottom of a container without sides. Often used for stacking parcels of sawn timber and bags of cocoa. Otherwise known as a pontoon or bolster.

FOB (free on board): Seller is responsible for inland freight and all other costs until the cargo has been loaded on the vessel/aircraft. Buyer is responsible for ocean/air freight and marine/air insurance.

Folded: An article folded in such a manner as to reduce its bulk 33 1/3% from its normal shipping cubage when not folded.

Force Majeure: The title of a standard clause found in marine contracts exempting the parties for nonfulfillment of their obligations by reasons of occurrences beyond their control, such as earthquakes, floods or war.

Foreign Bill: A bill of exchange drawn on an acceptor overseas.

Foreign Trade Zone Entry: A form declaring goods which are brought duty free into a Foreign Trade Zone for further processing or storage and subsequent exportation.

Foreign Trade Zone: A free port in the United Stated divorced from Customs authority but under Federal control. Merchandise, except that which is prohibited, may be stored in the zone without being subjected to the United States tariff regulation. Also called Free Trade Zone.

Forwarder, Freight Forwarder, Foreign Freight Forwarder: An independent business that dispatches shipments for exporters for a fee. The firm may ship by land, air, or sea, or it may specialize. Usually it handles all the services connected with an export shipment; preparation of documents, booking cargo space, warehouse, pier delivery and export clearance. The firm may also handle banking and insurance services on behalf of a client. The U.S. forwarder is licensed by the Federal Maritime Commission for ocean shipments.

FOT: Free on truck: Includes all loading, discharging and seafreight costs. Also includes costs of placing goods onto trucks at the quay.

Foul Bill of Landing: A receipt for goods issued by a carrier with an indication that the goods were damaged when received.

FRA: Forward Rate Agreement

Free Alongside: Quoted price includes the cost of delivering the goods alongside a designated vessel.

Free discharge: Free out: Includes loading costs and seafreight only.

Free In (F.I.): Cost of loading a vessel is borne by the charterer.

Free In and Out (F.I.O.): Cost of loading and unloading a vessel is borne by the charterer.

Free of Capture and Seizure (F.C.& S.): An insurance clause providing that loss is not insured if due to capture, seizure, confiscation and like actions, whether legal or not , or from such acts as piracy, civil war, rebellion and civil strife.

Free of Particular Average (F.P.A.): A marine insurance clause providing that partial loss or damage is not insured American conditions (F.P.A.A.C.). Partial loss is not insured unless caused by the vessel being sunk, stranded, burned, on fire, or in collision. English conditions (F.P. A.E.C.). Partial loss not insured unless a result of the vessel being sunk, stranded, burned, on fire, or in collision.

Free Out (F.O.): Cost of unloading a vessel is borne by the charterer.

Free Port: A port which is a foreign trade zone, open to all traders on equal terms; more specifically a port where merchandise may be stored duty-free, pending re-export or sale within that country.

Free Trade Zone: A port designated by the government of a country for duty-free entry of any non-prohibited goods. Merchandise may be stored, displayed, used for manufacturing, within the zone and re-exported without duties being paid. Duties are imposed on the merchandise (or items manufactured from the merchandise) only when the goods pass from the zone into an area of the country subject to the Customs Authority.

Freight Account: The debit note received from the shipowner for freight due on goods shipped.

Freight Collect Forward: Payable by consignee.

Freight Forwarder: An individual or company , acting on the behalf of a shipper, who arranges all necessary details of shipping and documentation for a manufacturer or exporter, which includes employing the services of a carrier of carriers.

Freight Release: Shipowner's authorisation to captain to give delivery of goods, freight having been paid on them.

FTA: Freight Transport Association or Free Trade Agreements

FTL: Full Trailer Load