Glossary: F

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Facility - Facility is a term that is interchangeable with terminal. It can be either part of a public port or a stand-alone private entity.

Factor - A factor in an agent who will, at a discount (usually five to 8% of the gross), by receivables.

Factoring - The discounting of an account receivable in order to receive immediate payment.

Factoring Houses - Financing Companies which purchase accounts receivable for a discount.

Fair Market Value - Sum that sale of article would bring under ordinary  market conditions.

FAK - Acronym meaning Freight All Kinds. Products shipped under FAK classification are charged rates that are different and usually higher than rates for specific commodity classifications. FAK cargo is usually shipped in a container with units of a variety of merchandise or commodities.

False Billing - Misrepresenting freight or weight on shipping documents.

Family Separation Allowance (FSA) - If a service member is separated from his or her dependents for over thirty-one days, he or she may apply for this allowance. This allowance is given only if the dependents are prohibited from accompanying the service member to the duty station.

FAS - Free Alongside Steamer; Seller owns the goods until they are delivered alongside vessel; selling price includes all costs so far plus cost of transportation to the dock.

FCIA - Foreign Credit  Insurance Association;  a private insurance association that provides insurance to U.S. exporters.

FCL - Full Container Load; the maximum permissible weight for the value of the cargo carried in a container.

F.C. & S. - Free of Captor and Seizure - Clause excluding war risks for the Marine Policy; war risks can be covered by issuing a separate War Policy with an additional premium being charged.

FD - Short for Free Discharge.

FDA - Food and Drug Administration

Federal Highway Administration (FHWA) - Division of U.S. Department of Transportation in charge of nation's highway system which administers federal aid for highway construction, develops safety standards/programs and has jurisdiction over safety of commercial motor carriers engaged in interstate/foreign commerce

Federal Maritime Commission - A regulatory  agency  that  controls  services,  practices,  and agreements of international water common carriers and noncontiguous domestic water carriers.

Feeder Service - Loaded or empty containers in a geographical 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 - An abbreviation that stands for Forty-Foot Equivalent Units.  Refers to container size standard of forty feet. Two twenty-foot containers or TEU's equal one FEU.

FIFO - First In, First Out; Warehousing  term meaning first items stored are the first used.

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

FlO- See Free in and Out.

FIOS - Free In, Out and Stowed - Cost of loading, discharging and stowing born by charterer, not the ship owner/operator.

FIOST - Free, In, Out, Stowed and Trimmed- Cost for loading, discharging, stowing and trimming born by charterer, not the ship owner/operator; used mainly for bulk charters.

Firkin - A volume measurement, which equals one quarter of a barrel.

Fixed Costs - The costs do not vary, even with a change in the level of activity.  Depending on the nature of a specific contract, some fixed costs will continue even if no activity is taking place. Examples of fixed cost include: leases, rent and property taxes.

Flat Car - A railroad car without walls and no roof.

Flat Rack I Flat Bed Container - A container with no sides and frame members at the front and at the rear.  This type of container may be loaded either from the side or from the top.

FMC (F.M.C.) - An abbreviation for the Federal Maritime Commission.  A regulatory body of the United States Government that is responsible for administering maritime affairs including the tariff system, the licensing of Freight Forwarders, the enforcement of conditions of the Shipping Act, as well as the approval of conference or other carrier agreements.

FOB - See Free on Board.

FOR - Acronym for Free on Rail.

Force Mejeure - The title of a commonly used clause in contracts, exempting the parties for non-fulfillment of their obligations as a result of conditions beyond their control, such as Acts of God or War.

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

Foreign Trade Zone - A free port in any country that is under government control, but is divorced from Customs authority. Goods and Commodities, except items that are prohibited may be stored in this zone without being subject to regular import duty regulations.

Forfaiting - The selling, at a discount, of medium to longer term accounts receivable or promissory notes of a foreign buyer for immediate payment.

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

Foul Bill of Lading - A receipt for goods issued by a carrier with an indication that the goods were damaged when they were received. A Bill of Lading is said to be clean, if no damage is noted.

Four-Way Pallet - A pallet that is designed so that the forks of a fork lift can access the pallet from all four sides.

Forwarder Compensation - See Brokerage.

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

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

Free In and Out (FlO) - Cost of loading and unloading a vessel is borne by the chartherer.

Free of Particular Average (FPA) - A marine insurance term, which means that the assuerer will not allow payment for partial loss or damage to foreign shipments except in certain circumstances.

Free-on Board (FOB) - This term is used with the designation of a physical point to determine the responsibility and basis for payment of freight charges and, unless otherwise agreed, the point at which title for supplies passes to the buyer or consignee.

FOR DESTINATION- Free on board at destination, or where the seller or consignor delivers the supplies on the seller's or consignor's conveyance to a specified delivery point. In this case, unless the contract provides otherwise, the cost of shipping and the risk of loss are borne by the seller or consignor.

FOR ORIGIN- Free on board at the place of origin, or where the seller or consignor places the supplies on the conveyance by which they are to be transported. Unless the contract provides otherwise, the cost of shipping and the risk of loss are borne by the buyer or consignee.

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

Free Sale Certificate - The government of the United States does not issue certificates of free sale. However, the FDA will issue one upon request. A letter of comment to the U.S. manufacturers whose products are subject to the Federal Food, Drug and Cosmectics Ac rot other acts administered by the agency. The letter can take the place of the certificate.

Free Port - An area at a seaport that is restricted and is for the handling of Duty-exempted imported goods. Also refered to as a Foreign Trade Zone.

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

Free Trade Zone - Designated by the government of a country, it is a port of entry for duty-free and any non-prohibited goods. Merchandise may be stored, displayed, used for manufacturing, etc., inside this 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 additional information; used to account for a shipment operationally, statistically, and financially .

Freight Forwarder - A person or company whose business is to act as an agent on behalf of the shipper. A freight forwarder frequently makes the booking reservation.

Freighters - See Ships.

Frequency Channels - A frequency channel may be set up when traffic requirements do not support the desired frequency of service. Frequency channels may be requested on the basis of operations necessity for support of a mission sensitive area or for quality-of-life purposes to remote areas.

Foreign Sales Corporation - It takes the place of Domestic International Sales Corporation (DISC). Studies the legal aspects of importing goods produced or assembled in more than one country.