Factor: An agent who
will buy receivables at a
discount.
FAS: Free Alongside Ship
FCL: Full Container Load.
FD: Free Discharge.
Federal Maritime Commission (F.M.C):
Regulatory shipping agency
responsible for rates and
practices of ocean
carriersshipping to and from the
United States.
Feeder Service: Loaded or
empty containers in a regional
area are transferred to a
"mother ship" for a long-haul
ocean voyage.
Feeder Vessel: A vessel
which transfers containers to a
"mother ship" for an ocean
voyage.
FEU (Forty-Foot Equivalent
Units): Refers to a
container size standard of forty
feet. Two twenty-foot containers
or TEUs equal one FEU.
Fifth Wheel: The
semi-circular steel coupling
device mounted on a tractor
which engages and locks with a
chassis semi-trailer.
Firkin: A capacity
measurement equal to one-fourth
of a barrel.
Fixed Costs: Costs that
do 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.
Flat Car: A rail car
without a roof and walls.
Flat Rack/Flat Bed Container:
A container without sides and
frame members at the front and
rear. Container can be loaded
from the sides and top.
Final Destination:
Consignee's facility where
shipment ends its movement.
F.O.B.: Free on Board.
Shipped under a rate that
includes costs of delivery to
and the loading onto a carrier
at a specified point.
F.O.B. Freight Allowed:
The same as F.O.B. named inland
carrier, except the buyer pays
the transportation charge and
the seller reduces the invoice
by a like amount.
F.O.B. Freight Prepaid:
The same as F.O.B. named inland
carrier, except the seller pays
the freight charges of the
inland carrier.
F.O.B. Named Point of
Exportation: Seller is
responsible for the cost of
placing the goods at a named
point of exportation.
F.O.B. Vessel: Seller is
responsible for goods and
preparation of export
documentation until actually
placed aboard the vessel.
Force Mejeure: The title
of a common clause in contracts,
exempting parties for
unfulfillment of obligations as
the 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.
Foreign Trade Zone: A
site sanctioned by the U.S.
Customs Service in which
imported goods are exempted from
duties until withdrawn for
domestic sale or use. Such zones
are used for commercial
warehouses or assembly plants.
Foul Bill of Lading: A
receipt for goods issued by a
carrier with an indication that
the goods were damaged when
received.
Four-Way Pallet: A pallet
designed so that the forks of a
folk lift truck can be inserted
from all four sides.
Free Alongside (FAS): The
seller must deliver the goods to
a pier and place them within
reach of the ship's loading
equipment. The buyer arranges
ship space and informs the
seller when and where the goods
are to be placed.
Free Astray: A lost
shipment that is found and sent
to its proper destination
without additional charge.
Free On Board (FOB-US
Domestic Use): Shipped under
a rate that includes costs of a
delivery to and loading onto a
carrier at a specific point.
(FOB-International Use): An
International Term of Sale than
means the seller fulfills an
obligation to deliver when the
goods have passed over the
ship's rail at the named port of
shipment. This means that the
buyer has to bear all costs and
risks to loss of or damage to
the goods from that point. The
FOB term requires the seller to
clear the goods for export.
FOB Freight Allowed: The
same as FOB named inland carrier
except the buyer pays the
transportation charge and the
seller reduces the invoice by a
similar amount.
FOB Freight Prepaid: The
same as FOB named inland
carrier, except the seller pays
the freight charges of the
inland carrier.
FOB Names Point of
Exportation: Seller is
responsible for the cost of
placing the goods at a named
point of exportation. Some
European buyers use this form
when they actually mean FOB
vessel.
FOB Vessel: Seller is
responsible for goods and
preparation of export
documentation until actually
placed aboard the vessel.
Free Time: The time
allowed shippers or receivers to
load or unload cars before
demurrage, detention or storage
charges accrue.
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, Foreign Trade Zone.
Free Sale, Certificate:
The US Government does not issue
certificates of free sale. The
Food and Drug Administration,
Silver Springs, Maryland USA,
will issue, upon request, a
letter of comment to the US
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: The amount
that a carrier s equipment may
be used without incurring
additional charges.
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 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.
Freight Charge: The
charge assessed for transporting
freight.
Freight Claim: Demand
upon a carrier for the payment
of overcharge or loss or damage
sustained by a shipper or
consignee.
Freight Forwarder: An
organization that represents
shippers by arranging transport
and completing documentation
required for international
shipping. Freight forwarders
also act as cargo consolidators.
Foreign Sales Corporation:
Takes the place of the Domestic
International Sales Corporation
(DISC). Studies the legal
aspects of importing goods
produced or assembled in more
than one country.
