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Free Alongside Ship, the exporter, organizes the inland transport and prepares the container at the port next to the ship specified by the buyer. The seller company also completes the customs procedures. After this point, it is up to the importer company to organize the shipment, take out insurance and complete the customs clearance in his own country.
Free Alongside Ship (FAS) value is a trade term used in international commerce to define the seller's responsibility for the delivery of goods at a named port of shipment. Under this term, the seller is responsible for loading the goods onto the ship alongside the vessel nominated by the buyer. The buyer bears all costs and risks of loss or damage to the goods from that point forward.
The main advantage of using Free Alongside Ship (FAS) as a trade term is that it provides clarity and transparency in the responsibilities of the buyer and the seller. The seller is responsible for delivering the goods at the port of shipment, which can simplify the logistics of the transaction. The buyer can choose the carrier and the shipping route, giving them greater control over the transportation of the goods. Additionally, FAS can reduce the cost of transportation, as the seller is only responsible for delivering the goods to the port, and the buyer is responsible for arranging the rest of the transportation.
Free Alongside Ship (FAS) Incoterm Explained
Free on Board (FOB) vs Free Alongside Ship (FAS): What's the Difference?
Free on Board (FOB) Incoterm Explained