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Free Alongside Ship (FAS) is an Incoterm used in international trade, where the seller delivers goods alongside a vessel at the agreed port of shipment, transferring the risk and responsibility to the buyer once the goods are placed alongside the ship.
FAS is a shipping term where the seller is responsible for delivering the goods to a specific location at the port, usually alongside the ship, but does not take responsibility for loading the goods onto the vessel. Once the goods are placed alongside the ship, the buyer assumes responsibility for the costs, risks, and any further transportation. This term is most commonly used in sea freight or inland waterway transportation.
FAS works by transferring responsibility for the goods to the buyer once they are placed alongside the ship at the designated port. This benefits your business by offering more control over the loading process and minimizing seller involvement in the later stages of transportation.
It allows the buyer to choose shipping options that best fit their needs, providing flexibility in managing logistics and transportation costs.
Buske Logistics is a Top 40 3PL with over 35 warehouses across North America, specializing in warehousing, transportation, and value-added services. We provide tailored logistics solutions serving major Fortune 500 companies.
FAS is important because it clearly defines the point at which responsibility shifts from the seller to the buyer, ensuring transparency in the shipping process. It allows the buyer to manage the loading of goods, which can be beneficial if they have control over the vessel or transportation method.
For example, in a typical FAS transaction, the seller arranges transportation to the port and delivers the goods alongside the ship. The buyer then arranges for the cargo to be loaded onto the ship and continues with the international journey, assuming responsibility for any costs or risks during transit.
