Incoterm FAS explained

What is Incoterm FAS?
Incoterm FAS can only be used for goods transported by water (sea or inland waterways). This Incoterm is especially suitable for bulk goods and not so much for goods in containers (in that case, use FCA). If you like to have relatively few obligations as a seller, FAS is a suitable Incoterm to use.

Incoterm FAS meaning
FAS stands for "Free Alongside Ship," or free alongside ship. This means that the seller of the goods brings the goods to the agreed port and place on the quay next to the ship. This Incoterm is usually only used with bulk or piece goods and not with containers. This is so because the goods in containers cannot be pre-checked. With bulk and general cargo, this can be done. In addition, FAS is a maritime condition, which means that only one carrier may be used to transport the goods.

FAS transport
The seller takes the goods to the agreed port of destination. Here the goods are delivered to the port near the ship where they are loaded by the buyer. This loading place can be right next to the ship, in the terminal of the port or at a special loading place at the port. This varies from port to port. The buyer then transports the goods himself to the final destination.

Incoterm FAS cost
The cost until the goods are delivered at the port is for the seller. Thus, transportation to the port is paid by the selling party. FAS is not a suitable Incoterm for international payments. This is because this requires the seller to provide a transport document (such as Bill of Lading), but this is not possible because as a seller you are not responsible for sea transport.

Seller obligations in FAS
In FAS, the seller has relatively few obligations. He must ensure that the goods are available for the buyer at the agreed port on the agreed date. The place in the port where the goods are to be delivered is agreed in advance. The risk of damage or loss of the goods is borne by the seller up to the point the goods are at the port. The seller is not required to take out insurance for the goods. All costs involved in exporting the goods will be paid by the seller.

Buyer's obligations at FAS
The risk of damage and loss of the goods goes to the buyer from the moment the goods are delivered at the agreed port. Therefore, it is important to specify in the agreement where the goods are to be delivered. This can be the quay next to the ship, but also inside a terminal of the port. The buyer is then responsible for loading the goods onto the ship at the port. The rest of the transportation costs are also the responsibility of the buyer. The buyer is also not required to purchase insurance for the goods. All costs involved in importing the goods are paid by the buying party.

Incoterm FAS vs. FOB
Incoterms FAS and FOB are very similar in content. Both are only suitable for transporting goods by sea or inland waterways. The seller is responsible for transporting the goods to the agreed port. The major difference between these Incoterms is that with FAS, the seller has fulfilled his obligations when he has delivered the goods alongside the ship at the quay. From that point on, responsibilities pass to the buyer. With FOB, the seller must also still load the goods into the ship. Only when the goods are loaded does the risk pass from seller to buyer.

Sea or air freight shipments with customs obligation?
Global shipments and shipments within Europe to/from non-EU countries are subject to customs obligations. What measures do you need to take and what documents are required? With the knowledge and experience of our specialists in the Rotra customs department , we are able to provide solutions for all your customs obligations that fit your logistics process while you focus on your own core business.

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