Glossary Of International Shipping Terms: F
FAF
Fuel Adjustment Factor. An ancillary charge on ocean freight shipments to account for fluctuations in fuel costs.
FAK
Freight All Kind. A system whereby freight is charged per container, irrespective of the nature of the cargoes, and not according to a Tariff. FAS Free Alongside Ship. An INCOTERMS term of sale in which the buyer is responsible for all charges of the transportation of the cargoes after they arrive at the side of the ship. It is not a commonly-used term of sale in international trade today.
FAST (Free and Secure Trade)
A joint Canada/US border security agreement, of which C-TPAT and PIP are the main initiatives.
FBT
Full Berth Terms. Indicates that the cost of loading and discharge is included in the steamship rate quoted. Ship owner pays these.
FCA
Free Carrier. See “Ex-Works”
FCL
Full Container Load. It is an arrangement whereby the shipper packs cargoes into a container provided by the carrier or the forwarder before delivering to the container terminal.
FEU
Forty foot (40’) Equivalent Unit. Commonly describes a 40- foot container.
FIO
Free In and Out. It is a term used in ship-chartering whereby the owner of the ship is not responsible for any charges incurred in the ports of loading or unloading.
FOB
Free On Board. It is an INCOTERMS term of sale where the seller of the cargoes are responsible for all charges of the transportation of the cargoes all the way up to their arrival on board the ship. It includes all charges of carriers or forwarders levied at the port of loading.
FCL/FCL
See “CY/CY”.
FCL/LCL
See “CY/CFS”.
Feeder Vessel
A vessel employed in normally short-sea routes to fetch or carry cargoes and containers to and from ocean-going vessels from the principle port hubs in a region to the minor ports.
FEU
Forty-foot Equivalent Unit (40' or 2 TEUs)
Final Destination
The place where the carrier or the forwarder actually turns over the container or cargo to the consignee of its agent. It is the end of liability of carriers or forwarders.
Flash Point
A temperature that when certain inflammable cargo reaches will trigger spontaneous ignition. It is an IMCO standard information requirement for dangerous goods.
FMC
Federal Maritime Commission. US Government Agency responsible for the regulation of all maritime activities.
Force Majeure
Force of nature. Accidents or incidents caused by the force of nature which are beyond the power of people to control.
Foreign Exchange Controls
Government restrictions on the use of currency, bank drafts or other payment types to regulate imports, exports and trade balances.
Free Along Side (FAS)
A basis of pricing meaning the price of goods alongside a transport vessel at a specified location. The buyer is responsible for loading the goods onto the transport vessel and paying all the cost of shipping beyond that location.
Free On Board (FOB)
An acronym for “free on board” when used in a sales contract. The seller agrees to deliver merchandise, free of all transportation expense, to the place specified by the contract. Once delivery is complete, the title to all the goods and the risk of damage become the buyer’s.
F.O.B Origin
“F.O.B. Origin” means that title and risk pass to the buyer at the moment of the seller’s delivery to the carrier. The parties may agree to have title and risk pass at a different time or to allocate freight charges by a written agreement.
F.O.B. Destination
“F.O.B. Destination” changes the location where title and risk pass. Under this arrangement, title and risk remain with the seller until they have delivered the freight to the delivery location specified in the contract.
Free Storage Period (FSP)
A carrier offers a period of time, normally three to five days, at destinations whereby imported containers or cargoes are allowed to be taken delivery by consignees free of any storage charge. After the FSP, there will be an overtime storage charge or demurrage levied by the carriers to the consignee. When bulk shipments are involved, the carriers are prepared to negotiate a longer FSP with the consignees.
Freight
(a) The price paid to the carrier for the transportation of goods or merchandise by sea or air from one place to another. (b) Freight is also used to denote goods which are in the process of being transported from one place to another.
Freight Collect
The freight and charges agreed by the shipper and carrier is payable at destination.
Freight Forwarder
A freight forwarder combines less-than-truckload (LTL) or less-than-carload (LCL) shipments into carload or truckload lots. Freight forwarders are designated as common carriers. They also issue bills of lading and accept responsibility for cargo. The term may also refer to the company that fills railroad trains with trailers.
Freight Prepaid
Freight and charges are required to be paid by a shipper before an original bill of lading is released.
Fresh Air Exchange (FAE)
The fresh air exchange system in a reefer container which removes harmful gases from reefers carrying sensitive perishable commodities. The fresh air vent is located on the reefer machinery at the end of the container. The fresh air vent is adjustable to accommodate a variety of cargo and chilled load operating conditions. The fresh air vent should be tightly closed when carrying frozen cargo.
Full Cellular Ship
A ship fitted for container carriage in all available space. The ship is fitted with vertical cells for container placement both below and above deck. No provisions are available for cargo other than containers.
Fumigation
Treatment of cargoes with a pesticide-active ingredient that is a gas under treatment conditions. It is a process required by many importing countries for the importation of wood and related products.
Functional Currency
The currency of the primary economic environment of and entity. For ODFL, this is US Dollars.
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