FOB (free on board)

FOB FREE ON BOARD
(... named port of shipment)

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.

FIOT(Free in and out - and trimmed).

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.

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.

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.

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.

Force majeure clause. This expression covers events which are completely unforeseeable and which excuse both sides to a contract from carrying out their obligations under the contract.

Full reach and burden. This expression covers the cargo space, which is normally available for cargo, including lawful deck capacity. In shipping "burden" means "carrying capacity".

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:

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”.

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 . . . ".

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.

Firm For Reply or Firm for Immediate Reply. During chartering negotiations, telexes and similar messages are transmitted by one parry's brokers to brokers for the other party using introductoryterminology such as these terms. In chartering practice, such terminology has become common and acceptable to most, if not all, shipping professionals.