Legal Definitions - free alongside ship

Definition: Free alongside ship (FAS) is a term used in mercantile contracts to describe the rights and responsibilities of both the buyer and seller of goods. Under FAS, the seller must clear the goods for export and deliver them to the wharf beside the buyer's chosen vessel. The buyer is responsible for all costs of carriage, and the seller's delivery is complete when the goods are placed on the wharf beside the vessel. This term is only used when goods are transported by sea or inland waterway.

Example: A company in China sells 1000 units of a product to a company in the United States. The contract specifies FAS as the delivery term. The Chinese company is responsible for clearing the goods for export and delivering them to the wharf beside the US company's chosen vessel. Once the goods are placed on the wharf, the US company assumes responsibility for all costs of carriage and any risk of loss.

Explanation: In this example, the FAS term specifies that the Chinese company is responsible for delivering the goods to the wharf beside the US company's chosen vessel. Once the goods are placed on the wharf, the US company assumes responsibility for all costs of carriage and any risk of loss. This means that if the goods are damaged or lost during transport from the wharf to their final destination, the US company is responsible for any losses.