Free Alongside - Definition
Written by Jason Gordon
Updated at December 15th, 2020
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What is Free Alongside?
Free Alongside Ship (FAS) is a shipping rule that states that a seller is obligated to deliver goods purchased by the buyer next to a particular vessel that the buyer designates. This rule is often used in a scenario when a buyer has a direct link to the vessel designated which can be used for loading of the goods purchased.
Back to: OPERATIONS, LOGISTICS, & SUPPLY CHAIN MANAGEMENT
A Little More on What is Free Alongside (FAS)
The Free alongside (FAS) is a shipping rule only applies to goods transported by sea or inland waterway. It is often used in international trade.
As a contractual agreement, FAS stipulates the port of delivery, the expected time of delivery of goods, payment plans, the party that is liable for risks and losses (and at what time do the risks shift to the other party), among other details.
When using FAS, the buyer and seller are also required to reach an agreement on who pays the freight costs and insurance costs.
Free Alongside Steps
When the Free Alongside (FAS) rule is used in a trade, there are certain meanings attributed to the rule, they are;
- Free: This means that the seller is obligated to deliver the goods purchased at a particular port where the goods can be easily transferred to a carrier.
- Alongside: This word also means the seller is obligated to deliver the goods near a particular vessel designated by the buyer. This means if the goods are not delivered to (near) the vessel, they might not be within the reach of the carrier.
Both the seller and the buyer have obligations, while the seller is responsible for export clearance, the buyer us liable for the cost of insurance, transportation, and loading of the goods into the designated vessel.