Conditions of Free Alongside Ship (FAS)

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FAS features a distinct point where the risk shifts from the seller to the buyer when the goods are placed alongside the ship. This moment is crucial for effective risk management and clarifies each party’s obligations.

Operating within standardized Incoterms, FAS facilitates international trade by establishing a common understanding among trading partners about the tasks, costs, and risks of delivering goods. FAS contributes to a more efficient and standardized global trade landscape.

When dealing with FAS, it’s essential to understand that the exporter must deliver the goods, along with commercial invoices and any additional proof of conformity outlined in the contract, like an analysis certificate or weighbridge document. These documents can be either in paper or electronic form, based on what’s agreed upon in the contract.

On the agreed-upon day and time, the exporter must place the goods near the vessel armenia phone number list provided by the importer. How the goods are delivered depends on the nature of the products and the customs regulations at the port. The exporter is not tasked with arranging for the carriage or transportation of the goods.

FAS is designed explicitly for ocean or inland waterway transport and is particularly popular for bulk cargo like oil or grain. It’s important to know that FAS is unsuitable for containerized shipments delivered solely to a terminal. In such cases, the appropriate Incoterm would be FCA (Free Carrier). This distinction ensures clarity and adherence to the specific conditions of each Incoterm.

Advantages of FAS Incoterm
The FAS Incoterm offers distinct advantages to both sellers and buyers in international trade:

Simplified Seller Responsibility: One of the primary benefits for sellers under FAS is the simplicity of their responsibilities. The seller’s obligation concludes once the goods are placed alongside the named vessel, streamlining their role in the transaction.
Buyer Control and Responsibility: FAS gives buyers significant control over the process. The buyer takes charge when the goods are delivered alongside their designated shipping vessel. However, it’s essential to note that the buyer assumes responsibility for ensuring their vessel is equipped for loading and covers associated loading costs.
Reduced Risk and Expenses for the Seller: FAS minimizes the risk and expenses borne by the seller. After unloading the goods close to the expected vessel, the exporter shifts risks and costs to the importer, who becomes responsible for transporting the goods to the final destination.