Free of capture and seizure clause. Under the Institute Time Clauses (Hulls) 1983 “War Exclusion Clause” a vessel is not covered against the consequences of hostilities or warlike operations whether there be a declaration of war or not. The complete clause reads as follows:

FEU. Forty foot equivalent unit. This is a unit used to measure the space available for containers. One standard size relates to the external length of the box being forty feet or 12.2m. The carriers in the United States emphasise the FEU whereas in other parts of the world the TEU, “twenty foot equivalent unit” is more accepted.

FAF (Fuel adjustment factor)or BAF (Bunker adjustment factor). Shipping is an energy-intensive industry just as liner shipping is a capital-intensive industry with the development of containerisation and expensive container ships.

Frustration. Frustration of a contract occurs when, through circumstances entirely beyond the parties' control, the commercial object of the contract is entirely frustrated.

Feeders - Grain. When grain was carried in bulk, feeders were erected to feed the different parts of the holds or compartments, thereby filling any free space which might result from settling of cargo during the voyage. Grain in bulk may settle as much as 5 per cent during a voyage; therefore, measures had to be taken to prevent the shifting of grain because of the settling and the void spaces created.

First Open Water (FOW). This expression in a fixture report or in a charterparty refers to the date when a port is free from ice conditions sufficiently to allow ships to enter, load /discharge and leave. For example, a ship can be fixed to “ . . . load at First Open Water St Lawrence Seaway . . . ".

 

Free time. This expression is used in relation to a voyage charter and laytime and refers to the time used by the charterer to load or discharge the cargo before laytime has commenced according to the terms of the charterparty:

Certificate of free pratique. This is a certificate from the port-health-authorities that the ship is without infectious disease or plague on board and therefore permitted to enter port and to allow people to board and disembark.

Flag of Registry. The flag which is displayed usually on the stern of the vessel is like an indicator or "badge" of the vessel's national identity or nationality.

FILO (Free in liner out). If a charterparty states that the cargo will be loaded free of expense to the shipowner or other carrier but that he will pay for the discharging, the discharging is on liner terms (or "gross terms"), hence the use of this abbreviation.

Note that for financial accounting, the abbreviation can also refer to the manner in which stock is valued, "first in, last out". This has no relevance to chartering.

Free surface effect. A tank which is completely filled with liquid is said to be pressed up”, while one which is not is called a “slack tank”.

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