Legal Definitions - free alongside ship

Free Alongside Ship (FAS) is a shipping term used in international trade contracts, specifically for goods transported by sea or inland waterway. It defines the precise point at which the seller's responsibility for the goods ends and the buyer's responsibility begins, impacting costs, risks, and delivery obligations.

Under FAS terms, the seller is responsible for clearing the goods for export and delivering them to the designated port, placing them on the quay (wharf) right alongside the buyer's chosen vessel. The seller covers all costs and risks associated with getting the goods to this specific point.

Once the goods are placed alongside the vessel on the wharf, the seller's delivery obligation is considered complete. At this exact moment, the risk of loss or damage to the goods transfers from the seller to the buyer. From that point onward, the buyer is responsible for all subsequent costs, including loading the goods onto the vessel, ocean freight, insurance, and any further transportation to the final destination.

• Example 1: Bulk Commodity Shipment

  A Brazilian coffee exporter sells a large quantity of green coffee beans to a roaster in Italy. The contract specifies FAS Port of Santos, Brazil. This means the Brazilian exporter must ensure the coffee beans are cleared for export and delivered to the Port of Santos, placed on the dock next to the Italian roaster's designated cargo ship. If the coffee is damaged while being transported to the dock or while waiting alongside the ship, it's the exporter's responsibility. Once the coffee bags are sitting on the wharf next to the ship, the risk transfers to the Italian roaster. The roaster then pays for the coffee to be loaded onto the ship, the ocean freight, and all subsequent costs and risks until it reaches Italy.

• Example 2: Manufactured Goods Export

  A furniture manufacturer in Vietnam sells several containers of custom-made wooden furniture to a retailer in the United States. The agreement is FAS Ho Chi Minh City Port. The Vietnamese manufacturer is obligated to transport the furniture from their factory, handle all export customs procedures, and deliver the sealed containers to the Ho Chi Minh City Port, placing them on the wharf right next to the container ship specified by the U.S. retailer. If a container is damaged during transport to the port or while waiting on the dock, the manufacturer bears the loss. Once the containers are positioned alongside the ship, the U.S. retailer becomes responsible for the cost of loading them onto the vessel, the sea journey, and all subsequent logistics and potential damage.

• Example 3: Specialized Equipment Sale

  A German company sells a large, specialized industrial pump to a construction firm in Egypt. The contract specifies FAS Hamburg Port. The German seller must arrange for the pump to be transported from their factory, complete all necessary export documentation, and deliver the crated pump to the Port of Hamburg, positioning it on the dock directly alongside the Egyptian firm's chosen cargo ship. The German company is responsible for any damage or loss until the pump is safely on the wharf next to the ship. Once it's there, the Egyptian construction firm takes on the risk and responsibility for loading the pump onto the vessel, paying for the sea freight, and all further transportation and insurance costs to Egypt.