Freight Forwarding Terminology

Federation of American Controlled Shipping (USA).

Freight All Kinds. Uniform rate of tariff applicable irrespective of commodity - the opposite of commodity or class rates.

Free Alongside Ship (... named port of shipment). In FAS, the seller/exporter/manufacturer clears the goods for export and then places them alongside the vessel at the "named port of shipment". (The seller's clearing the goods for export is new to Incoterms 2000.) The parties to the transaction, however, may stipulate in their contract of sale that the buyer will clear the goods for export.
The FAS term is used only for ocean or inland waterway transport.
The "named place" in FAS and all "F" terms is domestic to the seller.
The FAS term is commonly used in the sale of bulk commodity cargo such as oil, grains, and ore.
Normal payment terms for FAS transactions are generally cash in advance and open account, but letters of credit are also used.

Free Carrier (... named place). In FCA, the seller/exporter/manufacturer clears the goods for export and then delivers them to the carrier specified by the buyer at the named place. If the named place is the seller's place of business, the seller is responsible for laoding the goods onto the transport vehicle. If the named place is any other location, such as the loading dock of the carrier, the seller is not responsible for loading the goods onto the transport vehicle.
The FCA term may be used for any mode of transport, including multimodal.
The "named place" in FCA and all "F" terms is domestic to the seller. "Carrier" has a specific and somewhat expanded meaning. A carrier can be a shipping line, an airline, a trucking firm, or a railway. The carrier can also be an individual or firm who undertakes to procure carriage by any of the above methods of transport including multimodal. Therefore ,a person, such as a freight forwarder, can act as a "carrier" under this term. In such a case, the buyer names the carrier or the individual who is to receive the goods.
The FCA term is often used when making an initial quotation for the sale of goods.
Normal payment terms for FCA transactions are generally cash in advance and open account.

Full Container Load. A shipment of sufficient size to fill a container, either by cubic measurement or weight, depending upon governing tariff to meet the provided minimum. See also CONTAINER LOAD.

Incentive to FCL customers usually as a rebate on the basic service rate allowed on some (bulk) commodities shipped as FCL.

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.

Positioning of loaded containers between actual terminal ports and non-basic service ports by a subsidiary service (rail, road, sea).

Vessel used in short sea trade to service ports at which deep-sea container ships do not call - a vessel used on a feeder service.

Container movements to/from non-basic service ports at cost of carrier - centralization.

Forty Foot Equivalent Unit - shipping containers. 1 x 40' container = 1 FEU, 2 x 40' containers = 2 FEU, etc. NOTE: it is much more common to use TEU (Twenty Equivalent Unit).

Fridays, holidays excluded (USA).

Fridays, holidays included (USA).

First in, first out.

Free in and out.

Free in and out, stowed and trimmed

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.

First attempt at best offer that can be matched

Loading of goods into containers

Conclusion of shipbrokers negotiations to charter a ship - an agreement.

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.

The temperature at which a liquid produces enough vapor to form an inflammable mixture with air.

A container consisting of a rectangular base fitted with corner posts or ends. See also BOLSTER, FLAT-TAINER, PLATFORM.

Container base and end bulkeads, with or without tail door, rigid of foldable, topless or sideless or loose stanchions and runner for sides notwithstanding. See also FLAT.

Rubber (plastic) tank for the carriage of bulk liquids that can be secured by a harness inside a standard ISO container.

System of transferring containers between road and rail vehicles by transferring van from road bogies to a rail-car equipped with a turn-table.

System of transferring containers between road and rail vehicles by transferring van from road bogies to a rail-car equipped with a turn-table.

Latching device.

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.

Goods lost by shipwreck or cast overboard, which remains afloat.

Fork Lift Truck. Mobile, hydraulically operated (normally), lifting and stacking machine with horizontal arms (forks) to enter under the load for bottom lift - may also be equipped for top or side lift.

Federal Maritime Commission. Authorized tariffs and rate-making procedures on conferences operating in the USA.

Free on Board (... named port of shipment).

In FOB, the seller/exporter/manufacturer clears the goods for export and is responsible for the costs and risks of delivering the goods past the ship's rail at the named port of shipment.
The FOB term is used only for ocean or inland waterway transport.
The "named place" in FOB and all "F" terms is domestic to the seller.
Normal payment terms for FAS transactions are generally cash in advance and open account, and letters of credit.
The FOB term is commonly used in the sale of bulk commodity cargo such as oil, grains, and ore where passing the ship's rail is important. However, it is also commonly used in shipping container loads of other goods.
The key document in FOB transactions is the "On Board Bill of Lading".
Sellers and buyers often confuse the FOB term with FCA. FOB does not mean loading the goods onto a truck at the seller's place of business. FOB is used only in reference to delivering the goods past a ship's rail in ocean or inland waterway transport. FCA, on the other hand, is applicable to all modes of transport.

Fix on failure.

A container with hinged sides (and top) designed to be folded down to a small proportion of its erected volume. See also COLLAPSIBLE CONTAINER.

Clause limiting responsibilities of charterers, shippers and receiver of cargo, due forces beyond the control of man - Act of God.

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.

Recesses in the sides of containers or other goods for the entry of the forks of fork lift trucks. See also TYNE HOLES.

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

Form completed by the shipper containing instructions for forwarding of the goods. It forms the basis of the Interim Receipt and the Bill of Lading.

A pallet which can be lifted from any side.

Time allowed by equipment owner before charges (demurrage) becomes payable. May be for use of containers by shipper or for storage of container by terminal/depot, etc.

Clearance by the Health Authorities

A store in which goods not subject to the control of Customs are stored, as opposed to a bonded store.

Money payable on delivery of cargo in a mercantile condition.

Cost of freight, unless specifically stated to the contrary, obtained by multiplying the number for freight tonnes by the appropriate Basic Service Rate or Ocean Rate as appropriate.

A business or person who arranges shipments for customers usually break bulk and issues a HBL (sea) or HAWB (air). The freight forwarder then consolidates a number of shipments under one BL or AWB. The freight forwarder does not actually carry the cargo or conduct business for the ship.

The charge made for the transportation of freight. See also BSR.

Measurement tonne (ton) or weight tonne (ton) which yields the greater freight charge at the appropriate rate.

Container with full sides and roof (may also be ends) covered with a soft top or tarpaulin, drop sides non-withstanding.

Quarantine treatment using a fumigant gas (Note: methyl bromide, previously commonly used, is now prohibited in certain countries, e.g.: USA) to kill and/or prevent infestation by insects, etc.

Fully Loaded Weight and Capacity. The gross weight and capacity of a container, normally shown on the outside of the container.