Free Alongside Ship

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What Is Free Alongside Ship (FAS)?

Free alongside ship (FAS) is an international trade term that refers to an agreement between a seller and a buyer during export. Under the terms of FAS, the seller assumes responsibility for delivering the goods to a particular port on a ship designated by the buyer. The buyer then takes responsibility for loading the goods on board the vessel and any associated costs.

Significance of Free Alongside Ship (FAS) in Logistics and E-commerce

FAS is crucial as it promptly facilitates goods’ delivery from the seller to the buyer. Here are the benefits of this system.

  • It is an efficient way of transporting goods from the seller to the buyer, as it does not require the seller to be physically present at the delivery port.
  • This method eliminates any risks associated with transporting goods, as third parties do not handle the goods. 
  • It ensures that the goods are delivered in the suitable condition in which they were shipped.

Prerequisites of Free Alongside Ship (FAS) and How It Works

The seller delivers all the goods to the warehouse near the vessel. Follow these steps to understand how it works:

  • The seller must provide all necessary documents before the buyer takes the goods’ possession.
  • The buyer takes responsibility for offloading the goods onto the ship, paying shipping costs and taking out insurance.
  • The buyer risks losing or damaging the goods once loaded onto the ship.
  • Once the goods are loaded, the seller is released from any liability.

Use Cases of Free Alongside Ship (FAS)

Suppose a seller in the Philippines is selling goods to a buyer in Thailand. The seller will arrange for the goods to be loaded onto a ship in the Philippines and the buyer will pay for the shipping cost. The buyer in Thailand will also cover the cost of transporting the goods to their final destination. 

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