Part of the Comprehensive Incoterms Guide
FAS In Plain English
FAS (Free Alongside Ship) shipping can introduce complexities in the logistics chain, as the seller is responsible for managing the export processes up to the point of loading the cargo onto the ship. However, the buyer takes on the subsequent stages, including transportation, customs clearance, and delivery to the final destination. This arrangement may not be recommended for all situations, as it places a significant burden on the buyer to navigate the intricacies of the transportation and importation process, potentially leading to challenges and delays. Sellers and buyers should carefully consider their capabilities and resources before opting for FAS shipping to ensure a smooth and efficient supply chain.
Where Is The Named Place For Handing Over Responsibility From The Seller To The Buyer?
The seller is liable and responsible for all the steps in their country, up until the goods are alongside the ship, or the terminal warehouse in the case of air freight. The buyer is responsible for loading.
What Does The ICC Say?
Not recommended for containerized freight. Designed for bulk and break bulk cargo.
Is This A Good Choice?
There is no obvious reason why the buyer should only want to be liable and responsible for one task in the export country – loading containerized freight. Consider FOB instead, which is exactly the same as FAS, but has the additional benefit of the seller being liable and responsible for loading the ship.