What is Free Alongside Ship (FAS)?
Free Alongside Ship (FAS) is an international commercial term used to refer to a type of trade wherein the seller is responsible for delivering goods alongside a vessel at a port of shipment. It indicates that the seller has fulfilled the contract terms by making the goods available to the buyer. The goods are placed at the disposal of the buyer at the place of shipment, and responsibility for the goods is transferred from the seller to the buyer upon delivery. The goods are considered delivered to the buyer once they arrive alongside the ship, and the buyer is responsible for loading them onto the vessel and carrying them away.
Benefits of Using FAS
Using Free Alongside Ship can offer several advantages to buyers and sellers. It provides the seller with assurance that the goods have been delivered, and the buyer can minimize costs by not having to pay for transportation of goods to the port of shipment. In addition, FAS simplifies the negotiation process between the buyer and seller, since the seller only needs to deliver the goods to the port. The seller also has the benefit of mitigating risks associated with transporting goods, as they can be delivered to the buyer’s port of destination without any additional costs.
Examples of FAS
FAS is often used in the export of bulk commodities, such as grain and oil, or in the sale of large items, such as industrial machinery or vehicles. For instance, if an American company is selling grain to a Chinese company, the American company can deliver the grain to the port of shipment and the Chinese company can be responsible for loading the grain onto a vessel and transporting it to the port of destination.
Conclusion
Free Alongside Ship is a commercial term used to refer to a type of trade in which the seller is responsible for delivering goods alongside a vessel at a port of shipment. It provides buyers and sellers with several benefits, including mitigating risks associated with transporting goods and simplifying the negotiation process. FAS is often used in the export of bulk commodities and in the sale of large items.References – Incoterms 2020 – FAS (Free Alongside Ship) – What is Free Alongside Ship (FAS)?