Get to know the vital terms of Logistics and Supply Chain Management.
The free alongside ship (FAS) is a shipping term where the seller fulfills his obligations when goods are placed alongside the vessel at an agreed port of shipment. This happens when all the costs and risks have passed from the seller to the buyer.
The seller’s responsibility ends when he delivers the goods to the dock of the port. The cost and risks up to that point would be taken by the seller himself, including transportation, export duties, and loading preparations.
Transfer of Risk: Once the goods are loaded alongside the ship and a clean dock receipt is obtained, the title and risk get transferred to the buyer. Thenceforth, loading charges, freight, and risks of loss or damage in sea transport will be taken care of by the buyer.
Use in Maritime Transport: FAS is used mainly for transportation by sea or inland waterway and applies when access to shipping logistics is better on the buyer’s side.
FAS allows a proper division of responsibility and cost between the seller and the buyer. If the buyer has major control over the shipment arrangements or needs to manage particular needs for export, then FAS is even more beneficial.
FAS is a highly effective shipping arrangement when the buyer wants to take possession of goods at the dock as soon as they arrive at the port. However, when considered from the aspect of flexibility and clarity regarding the division of responsibility in connection with marine shipping contracts, the option is valuable.