FreightAmigo Academy – Shipping Terms

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There are currently 35 terms in this directory beginning with the letter F.
FBA (Fulfillment by Amazon)
FBA (Fulfillment by Amazon) is an Amazon service that allows you to store your products in Amazon’s fulfillment centers (also known as Amazon FBA warehouses) until they’re purchased by Amazon customers. Amazon will then pack and ship those products to Amazon customers.

FBA ID
FBA IDs are assigned to every shipment going to a different FBA warehouse.

FCA (Free Carrier)
FCA (Free Carrier) is an incoterm (per 2010 Incoterms®) that requires the seller to clear the goods for export and to either: deliver the goods to the buyer at the seller’s premises or deliver the goods to the buyer at another named place. When using the FCA incoterm, the point at which the seller is delivering the goods to the buyer must be named: e.g., “FCA, Name of Origin CFS.” FCA can be used for all modes of transport, including LCL (Less than Container Load), FCL, and air. If the seller is delivering the goods to the buyer at the seller’s premises, the seller is responsible for the cost and risk of loading the cargo onto the buyer’s provided transport.

FCL (Full Container Load)
A FCL container is one person's shipment that takes up a full container, as opposed to LCL.

FDA (Food and Drug Administration)
The FDA is a Partner Government Agency (PGA) responsible for regulating biological products, medical devices, food, cosmetics, veterinarian drugs, and products that emit radiation to ensure safety, security and efficacy for the US public. All imported goods of FDA regulated products are reviewed by the FDA for compliance. They hold imported products to the same standard as domestic goods and can refuse entry if products do not meet the standards in the Federal Food, Drug and Cosmetic Act. Most importers choose to hire customs brokers to assist with the FDA process on their behalf.

Federal Maritime Commission (FMC)
The Federal Maritime Commission (FMC) is an independent U.S. agency responsible for regulating foreign and inter-coastal ocean commerce shipping via U.S. ports. The FMC regulates both VOCCs (Vessel Operating Common Carriers) and NVOCCs (Non-vessel Operating Common Carriers). The purpose of the FMC is to maintain fair competition in ocean transportation for the sake of the shipping public.

Feeder (F)
Transportation conveyance utilised to relay cargo from the mother vessel to ultimate destination or from first receipt port to mother vessel.

Feeder Ports
Feeder Ports are smaller ports as compared to base ports, where mother vessels cannot berth, but smaller vessels can.

Feeder Vessel
A vessel used to connect with a mother vessel to service a port not called at by the mother or line vessel.

FEU (Forty-foot Equivalent Unit)
An FEU (forty-foot equivalent unit) is a measure of volume in units of 40-foot long containers. For example, “My company moves 500 FEU from Shanghai to Los Angeles every year.” One 40-foot container would equal an FEU, or two 20’ containers would equal an FEU.

First In First Out (FIFO)
Inventory concept to describe that the first received goods are the goods dispatched first, this is particularly important with perishable items.

First Sale Valuation
An item being imported into the US may have been subject to several transactions, with each transaction adding to the ultimate price paid by the U.S. importer. As duties and tariffs are based on the value of goods being imported this can significantly add to the duties and tariffs due by the US importer. First Sale Valuation can be used to determine the real value of imported goods. This allows U.S. importers, under certain conditions, to base the valuation of a product entering the United States on the first or earlier sale in a series of transactions, rather than the last one. The dutiable value of a First Sale transaction is based on the purchase price between the vendor and the factory rather than the price between the vendor and the importer. As a result, duties are not paid on the vendor’s markup or any additional charges from the subsequent sales. To take advantage of this the below criteria must be met: -The goods must be destined for export to the US at the time of the first sale -There must be at least two “bona fide sales” prior to the importer’s purchase -The parties involved must be unrelated or the transactions must be conducted at “arm’s length”

Flat Bed
Truck designed to haul heavy or oversized non-containerisable cargo.

FLEGT | Forest Law Enforcement, Governance and Trade
FLEGT licences are documents issued by timber-producing countries that have ratified a Voluntary Partnership Agreement with the EU.

Floating Cranes (FC)
Heavy duty cranes that are able to handle exceptionally heavy cargo if unable to use conventional gantry cranes.

For-Hire Carriers (FHC)
Persons or firms engaged in the transportation of goods or passengers for compensation. Classified into two general categories, specialised and general freight motor carriers.

Force Majeure
A state of emergency or condition that permits a company to depart from the strict terms of contract because of an event or effect that cannot be reasonably anticipated or controlled, i.e: beyond human control (French superior or irresistible force). Compare: ACT OF GOD, INEVITABLE ACCIDENT, VIS MAJOR.

Foreign Trade Zone (FTZ)
A Foreign Trade Zone (FTZ) is a secure geographical area “in or adjacent” to a U.S. Port of Entry that is considered to be outside of CBP territory. Merchandise foreign to the U.S. won’t be subject to CBP procedures and duty payments until the goods leave the FTZ and enter the U.S. The United States enacted the Foreign Trade Zone Act of 1934 to allow local manufacturers to compete with foreign enterprises.

Forklift
A forklift is a small industrial vehicle with a pronged device used to move and stack heavy loads in warehouses and other worksites.

Forty Foot Equivalent Unit (FEU/FFE)
Used to describe the size of a forty-foot container (= 2 TEU).

Forwarders Cargo Receipt (FCR)
The FCR is a proof of delivery of goods in good order and condition for shipment. The document is issued by us to the shipper and serves as proof to another party that payment to the vendor can take place according to agreed terms. The FCR is not a document to title or evidence of carriage. Under an FCR we are only responsible for goods while they are in our custody, if goods are lost or damaged during transit, the client must file a claim against the ocean carrier.

Free In/Liner Out (FILO)
A freight shipping rate of the loading goods into the ship in the logistics terms that includes the freight rate of cargo and the cost of offloading as per the customs of a port, but the loading of the cargo on the shipboard is not included in the freight rate.

Free On Board (FOB)
A term in international commercial law specifying at what point respective obligations, costs, and risk involved in the delivery of goods shift from the seller to the buyer under the Incoterms standard published by the International Chamber of Commerce. Free on board indicates whether the seller or the buyer is liable for goods that are damaged or destroyed during shipping. When used with an identified physical location, the designation determines which party has responsibility for the payment of the freight charges and at what point title for the shipment passes from the seller to the buyer. In international shipping, for example, “FOB [name of originating port]” means that the seller (consignor) is responsible for transportation of the goods to the port of shipment and the cost of loading. The buyer (consignee) pays the costs of ocean freight, insurance, unloading, and transportation from the arrival port to the final destination. The seller passes the risk to the buyer when the goods are loaded at the originating port.

Free Time
The time allowed for loading/ unloading containers/ equipment before demurrage or detention charges apply.

Free Trade Zone (FTZ)
Is a special commercial zone often near ports/airports where foreign and domestic merchandise and materials may be brought in without the payment of duties. Goods can be transformed/ stored within zones until exit where duties then become liable for payment. We operate several facilities and operations in FTZ locations.

Freight All Kinds (FAK)
Usually refers to consolidated cargo.

Freight Bill (FB)
Destination (Collect) Freight Bill: Prepaid Freight Bill. (1) Bill rendered by a transportation line to consignee containing description of freight shipper name, point of origin and weight charges (if not prepaid). (2) Bill rendered by a transportation line to shipper containing description of freight, consignee, destination and weight charges.

Freight Cashier
Responsible for collections of freight/charges/release of cargo/release of bills of ladings.

Freight Forwarder (FF)
1. Person engaged in assembling, collecting, consolidating shipping and distributing less than trailerload freight. 2. Also, a person acting as an agent in the transshipping of freight to or from foreign countries and clearing freight through federal customs.

Freight Release
Evidence that the freight charges for the cargo have been paid. If in writing, it may be presented at the pier to obtain release of the cargo. Normally, once the freight is paid, freight releases are arranged without additional documentation. Also known as freight bill receipt.

FTA (Free Trade Agreement)
An FTA agreement is an agreement made between two or more countries designed to minimize barriers to trade in an effort to increase trade between the participating countries. FTAs typically allow companies to buy and sell across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchanges.

FTL (Full Truckload)
An FTL (full truckload) is a type of trucking in which an entire truckload (usually 53’ long trailer) is reserved for the transportation of the cargo. FTL service is used for shipments that can fill up an entire truck. It’s also a trucking option if you require a faster transit time, because the trucker goes directly from origin to destination without any additional pickups or deliveries or stops at terminals along the way. A full container may be transloaded into an FTL if it is delivering to a residence.

Fuel Surcharge (FSC)
A fuel surcharge (FSC) is a fee assessed by a carrier to account for regional / seasonal variations in fuel costs. A fuel surcharge is most often seen in trucking, but an ocean or air carrier may also assess a fuel surcharge. A fuel surcharge helps protect the carrier from the volatility of fuel prices.

Fulfillment
Fulfillment logistics is the part of the supply chain that involves transporting customer orders and shipments, storing inventory in an ecommerce warehouse, packing boxes, and delivering orders on time. A fulfillment center is the hub for all of the logistics processes required to get a seller's product to their customer.

Full Visible Capacity
The trailer is loaded as full as the nature of the freight and other conditions permit, so that no more of the same type of freight can be loaded, consistent with safety and damage precautions.