What comes free with the ship?
Free Side Ship (FAS) is a contract term used in international export business that requires the seller to arrange for goods to be easily transferred to a designated port adjacent to a specific vessel. It stipulates that.
FAS is one of the many internationally recognized commercial terms used in the import-export business. Together these are known as Incoterms.
In international trade contracts, Free Side Ship (FAS) means that goods are delivered immediately next to the buyer’s ship to facilitate transhipment. It stands for International Commercial Terms and is one of many so-called Incoterms. Incoterms are published by the International Chamber of Commerce, which governs international trade. Incoterms is a globally standardized framework of terms for buyers and sellers. Incoterms define the parties responsible for insurance, customs clearance, shipping management, etc.
Understand shipping along with the ship
A contract between a buyer and a seller for the international shipment of goods includes details such as the time and place of delivery, payment deadlines, and who will pay for freight and insurance. The contract also indicates the date on which the risk of loss passes from the seller to the buyer.
Such agreements usually also include an accepted commercial term abbreviation, such as FAS.
If an international trade contract includes a “free ship” or FAS, the word “free” means that the seller must deliver the goods to a specific port, and the word “parallel” means that the goods must be delivered to a specified port. means that it must be within reach of the vessel’s slings.
At that point, the package is considered delivered and responsibility for loss or damage to the shipment passes to the buyer.
Generally, the seller is responsible for ensuring that the goods are cleared for export. The buyer is responsible for the cost of reloading the goods, subsequent sea transportation, and insurance.
Incoterms
FAS is one of the trade terms called Incoterms (International Commercial Terms). Incoterms are published by the International Chamber of Commerce (ICC), an industry association that facilitates global trade and commerce.
The ICC has standardized terminology so that parties to transactions can understand it anywhere in the world.
Incoterms are divided into two categories.
Regulations governing all means of transport Regulations governing maritime and inland waterway transport
Incoterms three-letter codes may be the same as those used in other standards, such as the U.S. Uniform Commercial Code, but they have different meanings. As a result, trade contracts will explicitly indicate which code their terms refer to.
Terms used by the International Chamber of Commerce may have slightly different definitions than the same terms used by the United States Uniform Commercial Code.
Other terms and conditions
As previously mentioned, FAS is a contractual term used to describe how goods transported by water must be delivered from the seller to the buyer and which party is responsible for the costs. is. Other terms and conditions of carriage include:
Free on Board (FOB): Goods must be delivered to a designated vessel and loaded onto the vessel. Buyer is responsible for import procedures and shipping costs to final destination. If the goods are physically on board, the risk of loss or damage passes to the purchaser. Cost and Freight (CFR): Goods must be delivered to the designated vessel and loaded onto the vessel. The seller must also handle export customs clearance issues and necessary inspections. Seller is not responsible for arranging shipping insurance. If the goods are physically on board, the risk of loss or damage passes to the purchaser.
Other terms have also become archaic in recent years.
What does Free Alongside Ship (FAS) mean?
FAS is a term used in international shipping where the goods are offloaded from the seller’s vessel at a location accessible to the buyer’s vessel and delivery occurs (and responsibility for costs passes to the buyer) once the goods have cleared export customs. (processed by the seller).
What is the difference between FOB and FAS?
FOB means “free on board” and differs from FAS in that the seller must actually load the goods onto the buyer’s designated vessel, at which point all risks and costs become the buyer’s responsibility . The seller pays the cost of export customs clearance.
Why do designations such as FAS and FOB apply to transportation?
These designations, known as Incoterms, are applied to transportation transactions to determine who is responsible for the costs and at what point in the international transportation of goods.
conclusion
Free across ship and its acronym FAS are one of the many Incoterms related to the transportation of cargo by sea or inland waterways.
This means that the seller of goods bears the cost of shipping those goods to an easily accessible port or ship for loading. At that point, the cost of freight and risk of damage will be borne by the buyer.
