Page 8 - Glossary of Shipping Terms

SHIPPING TERMS

TERM DESCRIPTION
F.E.U.
F.I.O. Forty-foot Equivalent Unit. (40'' or 2 Teus) FEU.

FAS (Incoterm®) Free In and Out.

FCA (Incoterm®) One of 11 Incoterms® can be used only for sea or inland waterway transport. “Free Alongside Ship”,
FCL/FCL means that the seller delivers when the good are placed alongside the vessel (e.g., on a quay or a barge)
FCL/LCL nominated by the buyer at the named port of shipment. The risk of loss of or damage to the goods
Feeder Service passes when the goods are alongside the ship, and the buyer has to bear all costs from that moment
Feeder Vessel onwards.
FEU
FF One of 11 Incoterms®, can be used for any mode of transport. “Free Carrier” means that the seller
Final Destination (FND) delivers the goods to the carrier or another person nominated by the buyer at the seller’s premises or
Flat Rack another named place. The parties are well advised to specify as clearly as possible the point within the
Flash Point name place of delivery, as the risk passes to the buyer at that point.
FMC
See CY/CY.
FOB (Incoterm®)
Force Majeure See CY/CFS.

Forwarder Sea transportation as performed by feeder operator.

Free Trade Agreement Vessel employed in normally short sea routes to fetch or carry goods and containers to and from ocean
(FTA) going vessels.

Free Trade Zone Forty-foot Equivalent Unit (40'' or 2 Teus) F.E.U.

Freight Forwarder.

End of carrier’s liability where carrier delivers the cargo to consignee.

A type of shipping container that is used to transport heavy, oversized, or irregularly shaped cargo.
Flat racks are often used for intermodal transportation, which means they can move goods between
different modes of transportation without reloading.

The temperature reaching which for certain inflammable cargo will trigger spontaneous ignition. It is an
IMCO standard information requirement for dangerous goods.
Federal Maritime Commission. US Government Agency responsible for regulatory aspects of all
maritime activities.

One of 11 Incoterms® can be used only for sea or inland waterway transport. “Free on Board” means
that the seller delivers the goods on board the vessel nominated by the buyer at the named port of
shipment or procures the goods already delivered. The risk of loss of or damage to the goods passes
when the goods are on board the vessel, and the buyer has to bear all costs from that moment onwards.

An event outside the control of the parties to the contract.

Known also as Freight Forwarder, Foreign Freight Forwarder. It’s an individual or business that
dispatches shipments by land, air, or sea, or it may specialize for exporters and for a fee. Usually it
handles all the services in the collection, consolidation, shipping and distribution of goods connected
with an export shipment; preparation of documents, booking cargo space, warehouse, pier delivery
and export clearance.
The firm may also handle banking and insurance services on behalf of a client.

A contractual agreement between two or more parties under which they give each other preferential
market access. The agreement must apply to substantially all the trade in goods between the two
parties and must not erect new barriers to other countries. Modern FTAs typically also cover trade in
services, as well as other non-tariff issues such as the recognition of standards, customs cooperation,
protection of intellectual property rights and regulation of foreign investment.

Sometimes called "customs free zones" or "duty free zones". It is a generic term referring to special
commercial and industrial areas. At which by special customs procedures it allows the importation of
non-prohibited foreign goods (including raw materials, components, and finished goods) without the
requirement that duties be paid immediately. If the merchandise is later exported, duty free treatment
is given to reexports. The zones are usually located in or near ports of entry. Merchandise brought
into these zones may be stored, assembled, processed or used in manufacture prior to re-export or
entry into the national customs territory. When manufacturing activity occurs in free trade zones,
it usually involves a combination of foreign and domestic merchandise, and usually requires special
governmental authority.

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