FAS stands for “Free Alongside Ship,” which is an international trade term used in transactions involving goods transported by sea and shipping contracts.
In FAS agreements, the seller delivers the items alongside the vessel designated by the customer at the indicated port of shipping.
Once the goods are placed alongside the ship, the buyer assumes all responsibility for transportation, insurance, and any risks associated with the goods. FAS is often used when the buyer arranges for the shipping and logistics of the goods.
FAS provides clarity regarding the point at which the seller’s responsibility ends, and the buyer’s responsibility begins, helping to minimise misunderstandings and disputes between parties involved in international trade.
