Glossary

"Free alongside" is one of several standard terms of sale for exports and imports. When goods are shipped FAS, the seller's responsibility ends when the merchandise is brought alongside the vessel (e.g., in a barge) or placed on the dock from which it will be loaded onto the vessel. The buyer is responsible for insuring the goods from that point on.

Free of capture and seizure warranty refers to a clause in ocean marine policies that essentially functions to delete war risk coverage from hull insurance.

Free of particular average is an ocean marine policy provision that eliminates all coverage for any partial loss of cargo.

Free of particular average—American conditions is an ocean marine policy provision that eliminates coverage for partial loss to cargo unless caused by stranding, sinking, fire, or collision.

Free of particular average—English conditions is an ocean marine policy provision that eliminates coverage for partial loss to cargo except in the event of stranding, sinking, fire, or collision (regardless of whether those perils were the proximate cause of the loss).

Free on board is one of several standard terms used in contracts of sale to indicate responsibility for damage to goods during shipment. When goods are shipped FOB, the seller's responsibility ends when a carrier takes possession of them, or, with respect to ocean shipments, when teh merchandise is placed safely aboard the vessel or when an on board bill of lading has been issues.

Free on board destination is one of several standard terms used in contracts of sale to indicate responsibility for damage to goods during shipment. When goods are shipped FOB destination, the seller's responsibility for the goods continues until they are delivered to the buyer in accordance with the contract terms.

A freight broker is a person, firm, or corporation that arranges transportation of commodities for a fee.

A freight forwarder is an entity that purchases motor service from a licensed motor carrier.

Frequency is the likelihood that a loss will occur.