Freight, shipping and chartering glossary

Term Meaning
Fair Return A profit level that enables a carrier to realize a rate of return on investment or property value that the regulatory agencies deem acceptable for that level of risk.
Fair Value The value of the carrier's property; the calculation basis has included original cost minus depreciation, replacement cost, and market value.
FAS (Free Alongside Ship) The meaning of it is that the delivery is completed for the supplier when the product is on the quay for loading on a vessel hired by the recipient. FAS is intended only for transporting goods by sea or inland waterway.
FCA (Free Carrier) Supplier produced, packed, and prepared the cargo to be shipped. Goods are received by the buyer’s carrier, which picks up the load from the seller’s place. You can call FCA conditions “buyer’s pick-up."
FCL (Full Container Load) An ocean shipping mode, in which the entire container is intended for one supplier and occupies a full container (regardless of size).
Feeder A grain container or reservoir constructed around the hatchway between two decks of a ship which when filled with grain automatically feeds or fills in the vacant areas in the lower holds.
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.
Field Warehouse A warehouse that stores goods on the goods' owner's property while the goods are under a bona fide public warehouse manager's custody. The owner uses the public warehouse receipts as collateral for a loan.
Fill Rate The percentage of order items that the picking operation actually found.
Fixed Costs Costs that do not fluctuate with the business volume in the short run.
Fixed Quantity Inventory Model A setup wherein a company orders the same(fixed) quantity each time it places an order for an item.
Flexible-Path Equipment Materials handling devices that include hand trucks and forklifts.
Flow Rack A storage method where a product is presented to picking operations at one end of a rack and replenished from the opposite end.
FOB (Free On Board) A supplier has organized land delivery, completed port formalities, and performed loading on ship’s board.
Food and Drug Administration (FDA) The US Department of Health and Human Services Agency, one of the federal executive departments.
For-Hire Carrier A carrier that provides transportation service to the public on a fee basis.
Forklift Truck A machine-powered device used to raise and lower freight and to move freight to different warehouse locations.
Forty-Foot Equivalent Unit (FEU) Conventional unit for measuring the capacity of freight vehicles. Also referred to as 2 TEU.
Forwarder’s Cargo Receipt (FCR) A document issued by a freight forwarder to the shipper that serves as certification of the receipt of cargo.
Free Time The period of time allowed for the removal or accumulation of cargo before charges become applicable.
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 Goods being transported from one place to another.
Freight Bill The carriers invoice for payment of transport services rendered.
Freight Carriers The freight companies that physically transport “carry” the freight on behalf of shippers.
Freight Charge The rate established for transporting freight.
Freight Class A type of cargo has been given certain characteristics that dictate how much it costs to transport them.
Freight Collect The freight and charges to be paid by the consignee.
Freight Forwarder An enterprise that provides services to facilitate the transport of shipments. Services can include documentation preparation, space and equipment reservation, warehousing, consolidation, delivery, clearance, banking and insurance services, and agency services. The forwarder may facilitate transport by land, air, ocean, or may specialize in one mode of transport. Also called Forwarder or Foreign Freight Forwarder.
Freight Prepaid The freight and charges to be paid by the consignor.
Freight Quotation A quotation from a carrier or forwarder covering the cost of transport between two specified locations.
FTL (Full Truckload) Transportation of cargo that completely fills the truck.
Fuel Surcharge Mechanism (FSC) Drayage fuel
Fumigation If consolidated into a container, the surcharge applied to the disinfection of the container
Fumigation Certificate A document that serves as confirmation that any wooden packing materials (ie, pallets) used in a cargo shipment have been fumigated.