Free Alongside - FAS

What does 'Free Alongside - FAS' mean

Free alongside (FAS) is a trade term requiring the seller to deliver goods to a named port alongside a vessel designated by the buyer. "Alongside" means that the goods are within reach of a ship's lifting tackle.

When used in trade terms, the word "free" means the seller has an obligation to deliver goods to a named place for transfer to a carrier.

BREAKING DOWN 'Free Alongside - FAS'

Contracts involving international transportation often contain abbreviated trade terms that describe matters such as the time and place of delivery and payment, when the risk of loss shifts from the seller to the buyer, and who pays the costs of freight and insurance.

The most commonly known trade terms are Incoterms, which are published by the International Chamber of Commerce (ICC). These are often identical in form to domestic terms, such as the American Uniform Commercial Code, but have different meanings. As a result, parties to a contract must expressly indicate the governing law of their terms.

It's important to realize that because this is a legal term, its exact definition is much more complicated and differs by country. It is suggested that you contact an international trade lawyer before using any trade term.

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RELATED FAQS
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    Creating standard terms for international trade was the main reason for the establishment of CIF and other Incoterms. Thus, ... Read Answer >>
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    Learn the difference between CIF and an Incoterm. CIF is one of the 12 Incoterm established in 1936 by the International ... Read Answer >>
  3. What kinds of costs are included in Free on Board (FOB) shipping?

    Find out about free on board shipping, the obligations of parties involved and the costs parties must assume in free on board ... Read Answer >>
  4. How does the International Chamber of Commerce define the term 'Free on Board' (FOB)?

    Find out more about the International Chamber of Commerce, Incoterms rules and how the International Chamber of Commerce ... Read Answer >>
  5. What does 'Incoterms' mean in relation to Ex Works (EXW) trades?

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    Using CIF when buying goods from abroad does not necessarily help in saving any money. There are other charges to be paid, ... Read Answer >>
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