| Factor |
A factor is
an agent who will, at a discount (usually five to 8% of the gross), buy receivables. |
| FAK |
Abbreviation
for "Freight All Kinds." Usually refers to full container loads of mixed
shipments. |
| False
Billing |
Misrepresenting
freight or weight on shipping documents. |
| FAS |
Abbreviation
for "Free Alongside Ship." |
| FCL |
Abbreviation
for "Full Container Load." |
| FD |
Abbreviation
for "Free Discharge." |
| F.D.A.
|
Food and
Drug Administration. |
| 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. |
| FEU |
Abbreviation
for "Forty-Foot Equivalent Units." Refers to container size standard of forty
feet. Two twenty-foot containers or TEU's equal one FEU. |
| 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. |
| 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. |
| 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. |
| FMC
(F.M.C.) |
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. |
| 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. |
| 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. |
| Foul
Bill of Lading |
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." |
| Free
Alongside (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
In and Out (FIO) |
Cost of
loading and unloading a vessel is borne by the charterer/shipper. |
| 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 (FOB - U.S. Domestic Use) |
Shipped
under a rate that includes costs of delivery to and the loading onto a carrier at a
specified point.
- 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 like amount.
- FOB Freight Prepaid: The same as FOB named inland carrier, except the seller pays the
freight charges of the inland carrier.
- FOB Named 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
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
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
Forwarder |
A person
whose business is to act as an agent on behalf of the shipper. A freight forwarder
frequently makes the booking reservation. |
| Freighters |
See Ships. |
