When loading dump created by mysqldump tool an error is
thrown saying storage engine for the table doesn't have 
an option.
                        
mysqldump tries to re-insert the data into the federated
table which causes the error. Since the data is already
available on the remote server, mysqldump shouldn't try
to dump the data again for FEDERATED tables.
                        
As stated in the bug page, it can be considered similar
to the MERGE ENGINE with "view only" nature.
                        
Fixed by adding the "FEDERATED ENGINE" to the exception
list to ignore the data.