F

Factor
An agent employed to sell in his own name (at an agreed commission) goods or merchandise belonging to his principal his acts being binding on the principal at the instance of third parties. Compare with Broker.

FAK
See Freight all Kinds

False Billing
Misrepresenting freight or weight on shipping documents.

FCL
See Full Container Load

Federal Maritime Commission
Abbreviation : (FMC)
Federal Maritime Commission. The U.S. Governmental regulatory body responsible for administering maritime affairs including the tariff system, Freight Forwarder Licensing, enforcing the conditions of the Shipping Act and approving conference or other carrier agreements.

Federation of American Controlled Shipping.
Abbreviation : FACS

Feeder
A grain container or reservoir constructed around the hatchway between two decks of a ship which when filled with grain automatically feeds or fills in the vacant areas in the lower holds.

Feeder Service
Cargo to/from regional ports are transferred to/from a central hub port for a long-haul ocean voyage.

Feeder Vessel
A short-sea vessel which transfers cargo between a central "hub" port and smaller "spoke" ports or to serve ports at which deep-sea container ships do not call.
Also call Feeder Ship

Fifth Wheel
The semi-circular steel coupling device mounted on a tractor which engages and locks with a chassis semi-trailer.

FIO
See Free In and Out.

Fireman
An unlicensed member of the engine, room staff whose duties consist in standing watch in the boiler room and insuring the oil burning equipment is working properly.

Firkin
A capacity measurement equal to one-fourth of a barrel.

Fixed Costs
Costs that do not vary with the level of activity. Some fixed costs continue even if no cargo is carried. Terminal leases, rent and property taxes are fixed costs.

Flags Of Convinience
The registration of ships in a country whose tax on the profits of trading ships is low or whose requirements concerning manning or maintenance are not stringent. Sometimes referred to as flags of necessity; denotes registration of vessels in foreign nations that offer favorable tax structures and regulations; also the flag representing the nation under whose jurisdiction a ship is registered. Ships are always registered under the laws of one nation but are not always required to establish their home location in that country.

Flash Point:
The temperature at which a liquid produces enough vapour to form an inflammable mixture with air.

Flat Car
A rail car without a roof and walls.

Flat Rack/Flat Bed Container
A container with no sides and frame members at the front and rear. Container can be loaded from the sides and top.

Flotsam:
Cargo cast or lost overboard and recoverable by reason of it remaining afloat.

Floating Oil Storage
Oil stored on floating vessels. It has been the practice for oil to be stored in large laid-up oil tankers in order to offset the loss involved while the tankers are inactive.

Floating Policy:
A form of cargo policy to cover many individual voyages. Seldom used today, having been replaced in practice by the open cover and open policy.

FMC
See Federal Maritime Commission

FOB
See Free On Board. See also Terms of Sale, FOB.

FOR
Abbreviation for "Free on Rail."

Force Majeure
The title of a common clause in contracts, exempting the parties for non-fulfillment of their obligations as a result of conditions beyond their control, such as earthquakes, floods or war.

Fore and Aft
The direction on a vessel parallel to the center line.

Forecastle
The raised part of the forward end of a ship's hull. The inside space may be used for crew accommodation or quarters, though on new ships this space is being used for the storage of paints, tackle, deck and engine stores, tarpaulins, etc.

Foreign Sales Corporation
Under U.S. tax law, a corporation created to obtain tax exemption on part of the earnings of U.S. products in foreign markets. Must be set-up as a foreign corporation with an office outside the USA.

Foreign Trade Zone
A free port in a country divorced from Customs authority but under government control. Merchandise, except that which is prohibited, may be stored in the zone without being subject to import duty regulations.

Fork Lift
A machine used to pick up and move goods loaded on pallets or skids.

Forty Foot Equivalent Units (Containers).
Abbreviation : FEU
Refers to container size standard of forty feet. Two twenty-foot containers or TEU's equal one FEU.

Forward
At or in the direction of the bow. Also the fore part of the ship.

Foul Bill of Lading/ Foul Bill
A receipt for goods issued by a carrier with an indication that the goods were damaged when received. Compare Clean Bill of Lading.

Four-Way Pallet
A pallet designed so that the forks of a fork lift truck can be inserted from all four sides. See Fork lift.

Forwarder Compensation
See Brokerage.

F.P.A.
See "Free of Particular Average."

Franchise:
A percentage shown in a cargo policy which has to be attained before a partial loss claim is to be paid. However, once the franchise is attained the claim is paid in full.

Freeboard:
This is the height between the deck line and the Plimsoll (or load) line.

Freeing Port:
An opening to allow water from the deck of a ship to flow over the side.

Free Alongside Ship
Abbreviation : FAS
The seller must deliver the goods to a pier and place them within reach of the ship's loading equipment. See Terms of Sale.

Free Astray
An astray shipment (a lost shipment that is found) sent to its proper destination without additional charge.

Free Discharge
Abbreviation : FD

Free In and Out
Cargo to be loaded and discharged free to the vessel . Cost of loading and unloading a vessel is borne by the charterer/shipper.

Free of Average:
A policy term excluding partial loss claims.

Free of Capture and Seizure:
The war risks exclusion clause that forms part of all marine insurance policies.

Free of Particular Average (FPA)
A marine insurance term meaning that the assurer will not allow payment for partial loss or damage to cargo shipments except in certain circumstances, such as stranding, sinking, collision or fire.

Free On Board
Abbreviation : FOB
1. Cost of a product before transportation costs are figured in.
2. Free on Board: Export term in which the price quoted by the exporter does not include the costs of ocean transportation, but does include loading on board the vessel.

Free on Board (Int'l Use)
See Terms of Sale.

Free Out (FO)
Cost of unloading a vessel is borne by the charterer.

Free Port
A restricted area at a seaport for the handling of duty-exempted import goods. Also called a Foreign Trade Zone.

Free Sale Certificate
The U.S. government does not issue certificates of free sale. However, the Food and Drug Administration, Silver Spring, Maryland, will issue, upon request, a letter of comment to the U.S. manufacturers whose products are subject to the Federal Food, Drug and Cosmetic Act or other acts administered by the agency. The letter can take the place of the certificate.

Free Time
That amount of time that a carrier's equipment may be used without incurring additional charges. (See Storage, Demurrage or Per Diem.)

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, etc., within the zone and re-exported without duties.

Freight
Refers to either the cargo carried or the charges assessed for carriage of the cargo.

Freight Abandonment:
A term in a hull policy whereby the underwriter waives his right to freight earned or to be earned by a ship that is the subject of a total loss claim.

Freight All Kinds.
Abbreviation : FAK
Usually refers to full container loads of mixed shipments.
A uniform rate or tariff applicable irrespective of commodity. (FAD rates are the opposite of commodity rates or class rates).

Freight Bill
A document issued by the carrier based on the bill of lading and other information; used to account for a shipment operationally, statistically, and financially. An Invoice.

Freight Container:
Article of transport equipment of a permanent character designed to facilitate the carriage of goods by one or more means of transport without intermediate rehandling of the goods themselves. This article shall be fitted with devices permitting its ready handling, be designed in order for easy filling and emptying and have an overall volume of' 8 cu.m. (282 cu.ft.) or more. The term excludes vehicles and conventional packing.

Freight Contingency:
The insurable interest of a consignee who has paid freight on goods when delivered over the ship's side but where the goods arc still subject to peril until they arrive at the final destination.

Freight Rate
The charge made for the transportation of freight.

Freight Forwarder
A person whose business is to act as an agent on behalf of the shipper. A freight forwarder frequently arranges shipments for customers usually break bulk. Does not actually carry the cargo or conduct business for the ship.

Freighters
See Ships.

Freight Rate
The charge made for the transportation of freight.

Frustration of Adventure:
A circumstances whereby a ship or goods cannot reach the contemplated destination but remain undamaged and are not lost to the owner. This peril is normally excluded from policies covering war risks.

Full Container Load
Abbreviation : FCL
Where the load carried in a container equals one of the two operating maxima - in a weight or volume. The load in a container if the shipper was assured of a separate container exclusively for his cargo. A shipper packed container.