Feeder services. When a liner operator provides carriage of goods by sea from major ports, he may not be able to call in at smaller, less busy ports to pick up or drop cargo.

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

Full terms. If an order circulating in the freight market is subject to "full terms" this implies that in addition to the usual commissions, owners may have to allow certain reductions, which are customary in the trade in question. It is therefore important to ascertain in advance what percentage will have to be deducted from the rate of freight in order to have a clear picture of the position.

This expression also implies that despatch money will be due for any time saved in loading and discharging.

 

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:

First Class Charterer. When the charterer does not want his identity known too early, he may instruct his shipbroker ("Charterer's agent") to keep his identity hidden, perhaps until serious shipowners have come up with FIRM OFFERS. The shipbroker will indicate that the charterer is directly known to him and he vouches for the charterer. The shipowner should, however, press for some information as to the identity of the charterer so that he can, perhaps, request BIMCO to check in its "Reference Register" if the nominated "Charterer" is recorded as generally being in default of payments.

 

Freight units. When charging freight for the carriage of goods and the rate of freight is to be based on weight, a distinction can be made between:

FONASBA. The Federation of National Associations of Shipbrokers and Agents. This organisation was established in 1969 and comprises national (usually European) associations of shipbrokers and agents who deal with a wide variety of agency work, such as liner agency, port agency and shipbroking for the chartering of and sale and purchase of ships. In 1989, 22 national associations belonged to FONASBA.

Full and down. A vessel is said to be “full and down” when loaded in such a way that upon sailing she is down to her loadline marks-each winter, summer or tropical loadline whilst the cargo space has been fully utilised. Unless rates of freight for heavy and light cargo vary considerably, best results, from a revenue standpoint, are obtained by loading a ship full and down. To achieve this result, a proper ratio between light and heavy cargo must be determined, which depends on the type and quantity of cargo available.

 

Free from incumbrances. Sale contracts of ships usually contain the proviso “free from incumbrances” which implies that the vessel is free from any mortgage or other debt.

 

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.

Freight idea. When this phrase is used in a communication from one shipbroker to another during negotiations for a charter, it is used by an owner's broker to indicate the desirable level of freight or the intended level of freight a charterer would be prepared to pay (when the phrase is used by a charterer's broker). It is a preliminary to more serious negotiations before the ship is fixed. The freight idea, from either side, can form the foundation of Voyage Estimating. The parties can then use the information to compare what other owners or charterers are considering so as to take up the best employment for the ship.

 

False date on the bill of lading. The contract of sale between the buyer and seller may impose a condition whereby the goods must be shipped and “onboard, shipped bills of lading” obtained by a certain date.

Freight insurance. Under the terms of a freight policy, coveting as a rule a sum not exceeding 15 per cent of the value of the hull and machinery, the shipowners are also covered according to Institute Time Clauses (Freight) for loss of freight directly caused by the perils in the Institute Time Clauses (Hulls) 1983 with the exception of “damage”. Other clauses are similar to Institute Time Clauses (Hulls) 1983. In the Institute Time Clauses (Freight) an additional clause for “Freight - Collision” is similar to the 3/4ths Collision Liability Clause in the Institute Time Clauses (Hulls) 1983 except that freight liability is covered.

 

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