What is the FAS Incoterm?
FAS (Free Alongside Ship) is an Incoterm in which the seller is responsible for delivering goods alongside the ship at the port of departure.
What is the FAS Incoterm?
The FAS Incoterm, an abbreviation for "Free alongside ship. Under FAS, the seller is responsible for delivering the goods alongside the ship at the port of departure, as agreed in the sales contract. The seller bears the costs and risks until delivery alongside ship. This means the seller must pack and label the goods for transport, complete all export formalities and place the goods alongside the ship at the agreed time and place.
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What are the advantages and disadvantages of the FAS Incoterm?
One of the advantages of the FAS Incoterm is that it gives the seller responsibility up to the point of delivery alongside the designated vessel at the port. This means that the seller bears the costs and risks up to that specific point, reducing the buyer's responsibility during the transportation process. In addition, the FAS Incoterm can benefit buyers who have the necessary resources and expertise to handle the loading and transportation of goods from the port of shipment. This can be cost-saving because the buyer does not have to use the services of a transportation company.
On the other hand, the FAS Incoterm also brings some disadvantages. One of the main disadvantages is that the buyer bears responsibility for the transportation and delivery of the goods from the moment they are placed alongside the vessel. This may involve additional costs, such as freight charges and possible insurance. In addition, the buyer may also face logistical challenges, such as arranging transportation and meeting customs requirements in the destination country. This can be time-consuming and complex, especially if the buyer lacks experience or resources.
Frequently asked questions about the FAS Incoterm
When is FAS an appropriate choice?
FAS (Free Alongside Ship) is an appropriate choice in the following situations:
- When transporting goods by ship.
- When the seller wants to maintain control over the transportation up to the port of departure.
- If the buyer is experienced in international trade.
- When there are no specific site requirements.
- If both parties agree on sharing costs and risks.
How does the DAT Incoterm differ from other Incoterms, such as FOB?
The main difference is that FAS means the seller is responsible until next to the ship at the port of departure, while FOB means that the seller is responsible until boarding the ship at the port of loading. Other differences include the transfer of risk and who is responsible for transportation costs and loading the goods. The choice between FAS and FOB depends on the needs and preferences of the buyer and seller, as well as the nature of the goods and the means of transportation.
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