FAS (free alongside ship)
FAS FREE ALONGSIDE SHIP
(… named port of shipment)
“Free Alongside Ship” means that the seller delivers when the goods are placed alongside the vessel at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment.
The FAS term requires the seller to clear the goods for export.
THIS IS A REVERSAL FROM PREVIOUS INCOTERMS VERSIONS WHICH REQUIRED THE BUYER TO ARRANGE FOR EXPORT CLEARANCE.
However, if the parties wish the buyer to clear the goods for export, this should be made clear by adding explicit wording to this effect in the contract of sale.
This term can be used only for sea or inland waterway transport.
Under this term the seller’s obligations are fulfilled when the goods have been placed alongside the ship. This means that the buyer has to bear all costs and risk of loss or damage to the goods from that moment. The buyer contracts with the sea carrier for the carnage of the goods to the destination and pays the freight. This INCOTERM can be classified in a group where the main carriage is unpaid. The term is very suitable for transport by sea and inland waterway, e.g., by barges.