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What Is Free Alongside Ship (FAS)?

3PL Glossary > Free Alongside Ship (FAS)

Free Alongside Ship (FAS) Definition | TLDR

Free Alongside Ship (FAS) is an Incoterm that indicates the seller's responsibility for delivering goods to a specified point alongside a vessel at the named port of shipment, with the buyer assuming responsibility for loading and transportation costs from that point onward.

Free Alongside Ship (FAS) Meaning

Free Alongside Ship (FAS) is an international trade term used in shipping and international commerce to describe an arrangement where the seller is responsible for delivering the goods to a specific port, placing them alongside the vessel designated by the buyer. FAS is one of the Incoterms (International Commercial Terms) established by the International Chamber of Commerce (ICC) to define the responsibilities of buyers and sellers in international trade transactions. In an FAS agreement, the seller bears the costs and risks associated with delivering the goods to the agreed-upon port of shipment. However, once the goods are placed alongside the ship, the risk transfers to the buyer, who is responsible for all subsequent costs, including transportation, insurance, and customs clearance.

What Is the Difference Between FAS and FOB?

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Free Alongside Ship (FAS) is an international trade term used in shipping and international commerce to describe an arrangement where the seller is responsible for delivering the goods to a specific port, placing them alongside the vessel designated by the buyer. FAS is one of the Incoterms (International Commercial Terms) established by the International Chamber of Commerce (ICC) to define the responsibilities of buyers and sellers in international trade transactions. In an FAS agreement, the seller bears the costs and risks associated with delivering the goods to the agreed-upon port of shipment. However, once the goods are placed alongside the ship, the risk transfers to the buyer, who is responsible for all subsequent costs, including transportation, insurance, and customs clearance.

While Free Alongside Ship is a commonly used Incoterm, it may not be as prevalent as others like Free On Board (FOB) in certain industries or regions. Importers and exporters should carefully consider the specific requirements of their trade transactions and negotiate favorable terms to ensure a smooth and cost-effective international trade process.

FAQs

Yes. In FAS, the buyer has the flexibility to select the vessel for loading. The seller's responsibility is fulfilled once the goods are placed alongside the ship at the agreed-upon port.

No. In FAS, the seller's responsibility ends when the goods are placed alongside the ship at the agreed-upon port. Loading onto the vessel is the buyer's responsibility.

No. FAS only involves the delivery of goods to the specified port of shipment. The buyer is responsible for customs clearance costs at the destination port as part of the onward transportation arrangements.

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