Shipping Glossary
COMMON SHIPPING TERMS
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FAS (Free Alongside Ship)
 
The seller transports the goods from his place of business, clears the goods for export and places them alongside the vessel at the port of export, where the risk of loss shifts to the buyer. The buyer is responsible for loading the goods onto the vessel (unless specified otherwise) and for paying all costs involved in shipping the goods to the final destination.
   
FCA (Free Carrier)
 
The seller (exporter) clears the goods for export and delivers them to the carrier and place specified by the buyer. If the place chosen is the seller's place of business, the seller must load the goods onto the transport vehicle; otherwise, the buyer is responsible for loading the goods. Buyer assumes risk of loss from that point forward and must pay for all costs associated with transporting the goods to the final destination.
   
FCL
  Full Container Load, Full Car Load.
   
Federal Maritime Commission (FMC)
 
The U.S. Federal agency responsible for overseeing Ocean Carriers, Conferences, NVOCC's and Ocean Freight Forwarders (now called OTI's - Ocean Transportation Intermediaries) at ocean ports and inland waterways.
   
Feeder Vessel
  A vessel that connects with a line vessel to service a port not directly served by that line vessel.
   
FEU
  (Forty foot equivalent) Term normally used in ocean freight rate negotiations referring to the equivalent of two twenty foot ocean containers.
   
FIATA
  International Federation of Freight Forwarders Associations.
   
Flag Carrier
  An airline or vessel of one national registry whose government gives it partial or total monopoly over international routes.
   
Flat Bed Chassis
  A semi-trailer with a level bed and no sides or tops. The floor is a standard height from the ground.
   
Flat Rack
  A platform designed with the flexibility to carry oversized cargo on board container vessels. It can be loaded from the sides and top, usually having adjustable or removable bulkheads at the front and back.
   
FMC
  Federal Maritime Commission (Control of Shipping acts USA)
   
FOB (Free on Board)
 
The seller (exporter) is responsible for delivering the goods from his place of business and loading them onto the vessel of at the port of export as well as clearing customs in the country of export. As soon as the goods cross the "ships-rails" (the ship's threshold) the risk of loss transfers to the buyer (importer). The buyer must pay for all transportation and insurance costs from that point, and must clear customs in the country of import. An FOB transaction will read "FOB, port of export". For example, assuming the port of export is Boston , an FOB transaction would read "FOB Boston ". If CIF is the Customs valuation basis, international freight and insurance must be added to the FOB value.
   
Foreign Trade Zone ( FTZ )
 
A port designated by the government for duty-free entry of any non-prohibited goods. Merchandise may be stored, displayed, and used for manufacturing within the zone and re-exported without duties being paid. Duties are imposed only when the original goods or items manufactured from those goods pass from the zone into an area of the country subject to customs authority. Also called a Free Trade Zone.
   
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 from the zone into the commerce of another country.
   
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, including preparation of documents, booking cargo space, warehousing, pier delivery, and export clearance. The firm may also handle banking and insurance services on behalf of a client.
   
Free of Particular Averrage (FPA )
 
A marine insurance clause relating to the recoverability of partial and total losses from perils of the sea. The American and English coverage's vary as follows:
 
American Conditions (FPAAC) - The underwriter does not assume responsibility for partial losses unless caused by sinking, stranding, burning, or colliding with another vessel.
 
English Conditions (FPAEC) - The underwriter assumes responsibility for partial losses if the vessel is sunk, stranded, burned, on fire, or in collision, even though such an event did not actually cause the damage suffered by the goods.
   
FTL
  Full Truck Load, an indication for a truck transporting cargo directly from supplier to receiver.
   
Factory Delivery
  The delivery of goods by a factory whereby the goods are put at the disposal of another (internal) party such as a commercial department.
   
Feeder
  A vessel normally used for local or coastal transport (for carriage of cargo and/or containers) to and from ports not scheduled to be called by the main (ocean) vessel, directly connecting these ports to the main (ocean) vessel.
   
Flag
  An indication of the country in which a means of transport is registered through a reference to the ensign of this country.
   
Flammable
  Capable to be set on fire under given circumstances. (Amendment 25 IMO DGS).
   
Flash Point
  The lowest temperature at which a good produces enough vapour to form a flammable mixture with air.
   
Flat Rack Container
  A container with two end walls and open sides.
   
Fleet
  Any group of means of transport acting together or under one control.
   
Force Majeure
 
Circumstance which is beyond the control of one of the parties to a contract and which may, according to the terms and conditions, relieve that party of liability for failing to execute the contract.
   
Fork Lift Truck
  A three or four wheeled mechanical truck with forks at the front designed for lifting, carrying and stowing cargo.
   
Forty Foot Equivalent Unit
  Abbreviation: FEU
  Unit of measurement equivalent to one forty foot container.
   
Forwarder
 
The party arranging the carriage of goods including connected services and/or associated formalities on behalf of a shipper or consignee.
   
Forwarding Charge
  Charges paid or to be paid for preliminary surface or air transport to the airport of departure by a forwarder, but not by a carrier under an Air Waybill (air cargo).
   
Forwarding Instruction
  Document issued to a freight forwarder, giving instructions to the forwarder for the forwarding of goods described therein.
 
 
 
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