What does FAS Mean in Incoterms?
On January 1st, 2020, the International Commerce Center published what is currently the most up to date International Commercial Trade Terms, Incoterms 2020. Commentary from the individuals responsible for writing these terms considered removing FAS from the list of 11 Incoterms; however, they ended up keeping it as this Incoterm is viable for very specific forms of trade.
One of the requirements in a FAS agreement is that the seller must place the cargo alongside the buyer’s ship and cannot leave the shipment at a port, waiting for the vessel to arrive. This can be considered a benefit to the buyer, especially when the cargo they are purchasing under FAS is often heavy and cumbersome; it ensures that the seller and the appointed vessel are present when transferred.