Free Alongside (FAS)
A trade term requiring the seller to deliver goods to a named port alongside a vessel designated by the buyer. "Alongside" means that the goods are within reach of a ship's lifting tackle.
When used in trade terms, the word "free" means the seller has an obligation to deliver goods to a named place for transfer to a carrier. Investopedia Says:
Contracts involving international transportation often contain abbreviated trade terms that describe matters such as the time and place of delivery and payment, when the risk of loss shifts from the seller to the buyer, and who pays the costs of freight and insurance.
The most commonly known trade terms are Incoterms, which are published by the International Chamber of Commerce (ICC). These are often identical in form to domestic terms, such as the American Uniform Commercial Code, but have different meanings. As a result, parties to a contract must expressly indicate the governing law of their terms.
It's important to realize that because this is a legal term, its exact definition is much more complicated and differs by country. It is suggested that you contact an international trade lawyer before using any trade term. Related Terms:
Cash In Advance
Cost and Freight - CFR
Cost, Insurance and Freight - CIF
Delivered Ex Ship - DES
Ex Works - EXW
Free Carrier - FCA
Free On Board - FOB
Incoterms |