Page 113 - 2017 Hotel Cost Estimating Guide

Free and Secure Trade (FAST) | A joint Canada/U.S. Full Berth Terms (FBT) | Indicates that the cost of
border security agreement, of which C-TPAT and PIP loading and discharge is included in the steamship

are the main initiatives.
rate quoted. Ship owner pays these.

Free In and Out (FIO) | A term used in ship-chartering Full Container Load (FCL) | An arrangement

whereby the owner of the ship is not responsible for any whereby the shipper packs cargo into a container

charges incurred in the ports of loading or unloading.
provided by the carrier or the forwarder before.

Free On Board (FOB) | The seller agrees to deliver Functional Currency | The currency of the primary

merchandise, free of all transportation expense, to economic environment of an entity. For ODFL, this is
the place speciied by the contract. Once delivery U.S. dollars.

is complete, the title to all the goods and the risk of
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damage become the buyer’s.

Free Storage Period (FSP) | A carrier offers a period

of time, normally three to ive days, at destinations General Agreement on Tariff and Trade (GATT) |
whereby imported containers or cargo are allowed An international multilateral agreement embodying

to be taken for delivery by consignees free of any a code of practice for fair trading in international

storage charge. After the FSP, there will be an overtime commerce.
storage charge or demurrage levied by the carriers to

the consignee. When bulk shipments are involved, the General Average | An unwritten, non-statutory,

carriers are prepared to negotiate a longer FSP with international maritime law that is universally recognized
the consignees.
and applied. It is founded on the principle that vessel

and goods are parties to the same venture and share

Freight | (a) The price paid to the carrier for the exposure to the same perils, which may require
transportation of goods or merchandise by sea or air sacriice or the incurring of extraordinary expense on

from one place to another. (b) Also used to denote the part of one for the beneit of the whole venture. It

goods that are in the process of being trasported from is an arrangement that will be applied when the vessel
one place to another.
encounters serious accidents caused by force majeure.

Freight All Kind (FAK) | A system whereby freight is G.R.I. | General Rate Increase.
charged per container, irrespective of the nature of the

cargo, and not according to a tariff.
Gross Tonnage | Applies to vessels, not to cargo.

Determined by dividing by 100 the contents, in cubic
Freight Collect | The freight and charges agreed feet, of the vessel’s closed-in spaces.

upon by the shipper and carrier are payable at the

destination.
Gross Weight | Entire weight of goods, packaging,
and container, ready for shipment.

Freight Forwarder | A freight forwarder combines
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less-than-truckload (LTL) or less-than-carload (LCL)
shipments into carload or truckload lots. Freight

forwarders are designated as common carriers. They

also issue bills of lading and accept responsibility for Hague Rules | These rules, set by the 1924
cargo. The term may also refer to the company that ills International Convention on Carriage of Goods by

railroad trains with trailers.
Sea, govern liability for loss or damage to goods

carried by sea under a bill of lading.
Freight Prepaid | Freight and charges are required

to be paid by a shipper before an original bill of lading Hague-Visby Rules | 1968 Revision of Hague Rules.

is released.
Hamburg Rules | A new set of rules that radically

Fuel Adjustment Factor (FAF) | An ancillary charge alters the liability that shipowners have to bear for

on ocean freight shipments to account for luctuations loss or damage of goods in the courts of those nations
in fuel costs.
where the rules apply, adopted in March 1978 at an

international conference in Hamburg.

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