What is FAS?
Also known as ‘Free Alongside Ship,’ (named port of shipment), FAS is a term used in international trade contacts that includes that the seller must arrange for the goods purchased to be delivered next to a particular vessel in a particular port, in order to be ready for transfer to a waiting ship.
Under FAS, the seller is responsible to place goods alongside the buyer’s vessel at the named port of departure. Under this Incoterm, the buyer has to cover all costs and risks of loss or damage to the goods from that point on.
The FAS Incoterm also requires the seller to clear the goods for export. This was updated from the previous version of Incoterms, which in its turn requires the buyer to arrange for export clearance. If there is a mutual agreement to change these arrangements, it should be clarified on forms, with the inclusion of specific requirements in the contract of sale.
Contracts for international transportation of goods typically include details like the time and place of delivery, payment, the exact time when the risk of loss shifts from the seller to the buyer, and who has to pay the costs of freight and insurance.
When should FAS be used?
FAS should only be used for non-containerized ocean shipments and inland waterway transport, whereas CIP can be used on all modes of transport.