FHEX (Fridays and Holidays excluded)
Flat rate. A vessel may be chartered for shipment of various kinds of cargo, the specific nature of which is not known at the time of the fixture, or it may have to load for several ports within a certain range, out of which one port will be selected as the final port of discharge. In such cases the agreed freight rate is a "flat rate". An example of reported fixture on a "flat rate" could read:
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.
Free alongside (FAS). If a charterparty provides for delivery of cargo "free alongside", it is up to the shippers to arrange for delivery of the goods within reach of ship's tackle (cargo handling equipment) unless the custom of the port provides otherwise. In some ports the meaning of this expression may be different. Shippers have fulfilled their obligation if they have arranged for delivery of the goods on pan of the wharf although beyond reach of ship's tackle.
Full knowledge of the local practice is therefore essential.