FAF
Fuel Adjustment Factor. An ancillary charge on ocean freight shipments to account for fluctuations in fuel costs

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
Free Alongside Ship. Price of goods include all inland costs of transportation and delivery to the dock.

FAST…Free And Secure Trade
A joint Canada/US border security agreement, of which C-TPAT and PIP are the main initiatives.

FBT
Full Berth Terms. Indicates that the cost of loading and discharge is included in the steamship rate quoted. Ship owner pays these.

FCL
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
Forty-Foot (40’) Equivalent Unit. Commodity describes a 40-foot container.

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 Exchange Controls
Government restrictions on the use of currency, bank drafts or other payment types to regulate imports, exports and trade balances.

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 Along Side (F.A.S)
A basis of pricing meaning the price of goods alongside a transport vessel at a specified location. The buyer is responsible for loading the goods onto the transport vessel and paying all the cost of shipping beyond that location.

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.

F.O.B Origin
“F.O.B. Origin” means that title and risk pass to the buyer at the moment of the seller’s delivery to the carrier. The parties may agree to have title and risk pass at a different time or to allocate freight charges by a written agreement

F.O.B. Destination
“F.O.B. Destination” changes the location where title and risk pass. Under this agreement, title and risk remain with the seller until they have delivered the freight to the delivery location in the contract.

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 freight forwarder combines Less Than Truckload (LTL) or Less Than Carload (LCL) shipments into carload or truckload lots. Freight forwarders are designated as common carriers. They also issue bills of lading and accept responsibility of the cargo. The term may also refer to the company that fills railroad train with trailers.

Freighters
See Ships.

Functional Currency
The currency of the primary economic environment of the entity.