International Business

What Does Free Alongside Ship Mean

There are many contract terms in carriage by sea. One of them is FAS ( Free Alongside Ship). Free Alongside Ship means that the seller delivers when the goods are placed alongside the vessel at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment (Incoterms 2017).

 The price quoted under FAS (Free Alongside Ship) contract includes charges up to placing the goods alongside the ship in the seller’s country. The seller’s obligation to the named port and place them alongside the vessel nominated by the buyer The buyer has to bear all costs and risks of loss of or damage to the goods from that moment.

The buyer has to contract the sea carrier and arrange for the transportation. He should intimate the seller about the name and loading-berth of the ship delivery dates. The seller should obtain the export license or other authorization, where applicable and carry out customs formalities. He should tenser to the buyer dock or warehouse receipt or warrant which evidences the delivery of goods alongside the ship. He has to bear the cost of any checking operations such as checking quality, measuring, weighing and counting, which are necessary for delivering the goods alongside the ship.

The seller may arrange for booking the cargo with the shipping company and obtain a bill of lading. In such cases, the cost should be borne by the buyer. The seller may also provide at the buyer’s request and cost, the certificate of origin and any other documents that the latter may require.

Documents required under FAS (Free Alongside Ship) : The documents that the seller has to submit under this terms of shipments are:

(a) Dock or Warehouse Receipt or Warrant,

(b) Invoice, and

(c) Any other documents as required by the buyer.

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