Nautical Term: FAS
Definition of FAS
Free Alongside Ship (FAS) is a term used in international trade to define the point of transfer of risk and costs for goods from the seller to the buyer. Specifically, the seller delivers the goods to an appropriate dock or terminal at the port of embarkation. The buyer covers the costs and risks of loading the goods onto the ship.
For example, suppose a buyer from Japan enters into a contract with a seller from Spain to purchase 1,000 tons of wheat, free alongside ship. The seller delivers the wheat to the dock at the port of embarkation in Spain. The buyer covers the costs and risks of loading the wheat onto the ship at the port of loading in Japan. Once the wheat is loaded onto the ship, the risk and costs are transferred from the buyer to the shipper or the carrier.
Explore other nautical terms:
