FREE ALONGSIDE STEAMER

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

FREE OF CAPTURE & SEIZURE

Free of Capture & Seizure - Clause excluding war risks from the Marine Policy; war risks can be covered by issuing a separate War Policy with an additional premium being charged.

FREE ON BOARD TRUCK

Seller owns goods until they are loaded on truck at his factory; selling price includes all costs so far plus cost of loading on truck.

FREE ON BOARD VESSEL

Seller owns goods until they are loaded on vessel; selling price includes all costs so far plus cost of loading on vessel.

FREE ON BOARD WAREHOUSE

(Free on board warehouse.) Seller owns goods until they are delivered to buyer's warehouse at final destination; selling price includes all costs so far plus transportation to final warehouse.

F.O.B./F.A.S. ENDORSEMENT

If a merchant sells on F.O.B., F.A.S., C&F or similar terms, it is the buyer's responsibility to place the insurance.

FAST AS CAN

The term appears in a C/P when laytime is not fixed. It means that the laytime is calculated by reference to the maximum rate at which the ship in full working order is capable of loading or discharging the cargo as fast as she can. At times this term is combined with the custom of the port or customary quick dispatch.

FIRM OFFER

Used by the owner’s shipbroker in negotiations to indicate that the vessel is being offered to only one possible charterer at a time. Conversely, the term could also be used by the charterer’s shipbroker inviting owner’s shipbroker to submit a firm offer for a particular order. It is a normal practice to include certain main terms in a firm offer.

FIRST CLASS CHARTERER

When the name of the charterer is not revealed by his broker the charterer is referred to as a first class charterer. However, it is risky to negotiate with such a charterer as his record of payments cannot be cross-checked with BIMCO.

FIRST OPEN WATER

The first date when a port is free from ice conditions to allow ships to enter, load/discharge and leave safely, at the start of a new season. The term is commonly used in the St Lawrence Seaway.

FIXTURE

Conclusion of a shipbroker’s negotiations to charter (fix) a ship.

FIXING

Chartering a Vessel

FLATPACKING

Cargo to be presented stacked and secured as an integral unit.

FORCE MAJEURE

The title of a standard clause in marine contracts exempting the parties for non-fulfillment of their obligations as a result of conditions beyond their control, such as earthquakes, floods, or war.

FORCE MAJEURE

Circumstances beyond the control of one of the parties to a contract. E.g., Act of God. This can relieve that party from performing the contract.

FREE ALONGSIDE

Seller delivers goods to appropriate dock or terminal at port of embarkation and buyer covers  costs and risks of loading.

FREE (OF) TURN

Time lost (if any) by a vessel for waiting its turn to berth to count as laytime against the charterer. Opposite of “in regular turn”.

FREE DISCHARGE

The charterer contracts to discharge the vessel, free of expense to the shipowner.

FREE DESPATCH

If loading/discharging achieved sooner than agreed, there will be no freight money returned.

FREE IN & OUT

Distance measured amidships from the waterline to the main deck.

FREE IN & OUT AND SPOUT TRIMMED

Charterer bears the expenses of the cargo to be loaded, spout trimmed and discharged, free of expense to the shipowner (e.g., bulk wheat).

FREE IN & OUT AND STOWED

Charterer bears the expenses of loading, stowing and discharging, free of expense to the shipowner (e.g., bagged rice).

FREE IN & OUT AND TRIMMED

Same as FIO plus that the cargo has also to be trimmed at the charterer’s expense, e.g., bulk cargo.

FREE IN & OUT STOWED AND TRIMMED

Charterer bears the expenses of the cargo to be loaded, stowed, trimmed and discharged free or expense to the shipowner (e.g., scrap iron).

FREE IN LINER OUT

Charterer pays expenses at load port(s), while the shipowner pays the expenses at the discharge port(s)

FREE ON BOARD

Seller sees the goods _over the ship_s   rail_ on to the ship which is arranged and paid for by the buyer

FREE OUT

Free of discharge costs to owners. Includes seafreight only.

FREE PRATIQUE

This expression means that the vessel has a clean bill of health. (The health authorities board the vessel in order to ascertain the correctness of the information given by the master or the agent).

FREE TO CARRIER

A modern equivalent of FAS used in intermodal transport where goods are transferred at a nominated forwarder premises, depot or terminal but not actually put on board vessel.

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 reexported without duties being paid. Duties are imposed on the merchandise (or items manufactured from the merchandise) only when the goods pass from the zone into an area of the country subject to the Customs Authority. Also called FOREIGN TRADE ZONE

FREEBOARD

Distance measured amidships from the waterline to the main deck.

FREIGHT

The money charged by the carrier for transporting goods.

FREIGHT AT DESTINATION

Freight payable at destination upon delivery of goods. Also referred to as “freight collect”.

FREIGHT TON

Unit of cargo on which freight rate is based, either one tonne or one cubic metre.

FRESH WATER ALLOWANCE

Loadline regulations permit extra draft when a vessel loads in fresh water, the reason being that the vessel’s draft becomes less when she reaches open sea (salt water) where the density of water is greater.

FRESH WATER ARRIVAL DRAFT

Fresh water draft of a ship on arrival at a port.

FRIDASYS & HOLIDAYS EXCEPTED or FRIDAYS & HOLIDAYS INCLUDED

Fhex applies to Muslim countries where Friday is observed as a holiday; Fhinc applies to non-Muslim countries where Friday is not observed as a holiday.

FRUSTRATION

There is a question of frustration when through circumstances entirely beyond control of parties commercial object of maritime adventure is entirely frustrated. The expression “frustration of the adventure” in C/Ps relates to a delay of such a duration—without the actual fault of either party—as to frustrate the charter.

FULL & COMPLETE CARGO

Cargo required to fill a ship to capacity either by weight or cubic measurement.

GENERAL AVERAGE (G.A.)

Ancient principle of equity in which all parties in a sea adventure (ship, cargo, and freight) proportionately share losses resulting from a voluntary and successful sacrifice of part of the ship or cargo to save the whole adventure from an impending peril, or extraordinary expenses necessarily incurred for the joint benefit of ship and cargo.

GENERAL AVERAGE SECURITY

Documents the cargo owner presents to the General Average Adjuster to replace the vessel owner's maritime lien on cargo for its share of General Average and to obtain release of the goods by the Steamship Company. G.A. Security consists of a G.A. Bond and either a cash deposit or an Underwriter's Guarantee.

GOODS

Cargo shipped by sea or air.

GRAB / GRAB DAMAGE

Grab is a unit of cargo handling, consisting or two quarter circle metal parts which can be brought together to make a close fit, operated by a crane or winch power. Grab damage is damage to ship caused by use of the mechanical grabs.

GRAIN CAPACITY

The capacity in cubic feet of the cargo hold in a ship measured to inside of the shell plating. (If measured to the inside of the frames or cargo battens it is called bale capacity is used for bulk cargoes e.g. grains, and bale capacity is used for general cargo, e.g., pallets.

GROSS TERMS (GROSS CHARTER)

Type of voyage charter in which the shipowner pays for tally, loading, stowing, trimming and discharging costs. The alternative is fio, fios, fiot or foist where the cost of tally, loading, discharging, etc., are for charter’s account. (However the port charges are paid by the shipowner in all cases).

GROSS TONNAGE

The vessel’s internal space measured in units of 100 cu.ft. The certificate of tonnage specifies the ship’s gross tonnage. (Generally speaking, gross tonnage is a measure of the volume of a vessel and net tonnage represents the volume available for cargo, that is, the revenue earning space in a vessel). Different tonnage measurement systems (i.e British, Suez Canal or Panama Canal) have different tonnages for the same vessel.

GUARANTEED FREIGHT

Freight payable whether the goods are delivered or not, provided the failure to deliver the goods resulted from causes beyond the carrier's control.

HANDY SIZE / MAX

Bulk carriers in the range of 20,000-50,000 tonnes dwt.

HARMONIZED SYSTEM

An international commodity classification system, developed under auspices of Customs Cooperation Council, adopted by the United States in 1989 and increasingly the most widely accepted import/export classification methodology. Replaces SCHEDULE B export codes and TARIFF SCHEDULE OF THE U.S. import codes.

HATCH COAMING

Steel parapet surrounding a hatchway which rises vertically to prevent (i) a person from falling into the hatch, and (ii) water from entering the hold.

HEAD CHARTERER

Most C/Ps allow the charterer to sub-let or sub-charter the vessel to other charterers. The original charterer is then called the “head charterer” or “disponent owner”.

HEAVY GRAINS, SOYA BEANS & SORGHUMS

What [SF44-49], soyabeans [SF48-52] and sorghums [SF 44-49] are considered as heavy grains. Also rye and maize are heavy grains. Barley and oats are classified as light grains. In practice heavy-grains constitute the bulk of the grain shipments.

HEAVY HANDY DEADWEIGHT SCRAP

A type of scrap metal cargo. It is neither very light nor very heavy and is therefore called “handy” with a SF of between 48-52.

HIRE

The payment for hiring a vessel on a time-chartered basis.

HOLIDAY

Means a day of week (or part thereof) on which cargo work on the ship is suspended at the place of loading/discharging by reason of the local practice or custom. The day may usually be used for rest (Sunday) or may be observed as a religious festival (Christmas).