Free Alongside Ship vs. Free Carrier

Attribute	Free Alongside Ship	Free Carrier
Delivery location	Alongside the ship at the named port of shipment	Named place agreed upon by the buyer and seller
Responsibility for loading	Buyer	Depends on the agreement between buyer and seller
Transportation cost	Buyer	Depends on the agreement between buyer and seller
Risk of loss or damage	Buyer	Depends on the agreement between buyer and seller

Introduction

When it comes to international trade, there are various terms and conditions that need to be understood by both buyers and sellers. Two common terms used in international trade are Free Alongside Ship (FAS) and Free Carrier (FCA). While both terms involve the seller being responsible for delivering the goods to a specific location, there are key differences between the two that can impact the responsibilities and risks of each party involved.

Definition of Free Alongside Ship (FAS)

Free Alongside Ship (FAS) is a trade term that requires the seller to deliver the goods alongside a named vessel at a specified port. Once the goods are delivered to the specified location, the risk and responsibility transfer to the buyer. The seller is responsible for all costs and risks associated with delivering the goods to the named port, including export clearance and loading costs. The buyer is responsible for all costs and risks associated with the goods from that point onwards.

Definition of Free Carrier (FCA)

Free Carrier (FCA) is a trade term that requires the seller to deliver the goods to a named place, which can be a carrier's terminal or another location agreed upon by both parties. Unlike FAS, the seller is responsible for delivering the goods to the specified location, which can be at the seller's premises, a carrier's terminal, or another location. Once the goods are delivered to the specified location, the risk and responsibility transfer to the buyer. The buyer is then responsible for all costs and risks associated with the goods from that point onwards.

Key Differences

One key difference between FAS and FCA is the location of delivery. In FAS, the goods are delivered alongside a named vessel at a specified port, while in FCA, the goods are delivered to a named place, which can be a carrier's terminal or another agreed-upon location. This difference in delivery location can impact the costs and risks associated with transporting the goods.

Another key difference is the point at which the risk and responsibility transfer from the seller to the buyer. In FAS, the risk and responsibility transfer to the buyer once the goods are delivered alongside the vessel at the specified port. In FCA, the risk and responsibility transfer to the buyer once the goods are delivered to the named place, which can be at the seller's premises or another agreed-upon location.

Responsibilities of the Seller

Under FAS, the seller is responsible for delivering the goods alongside the vessel at the specified port. This includes all costs and risks associated with transporting the goods to the named port, as well as export clearance and loading costs. The seller must ensure that the goods are delivered in good condition and in compliance with any applicable regulations.

Under FCA, the seller is responsible for delivering the goods to the named place, which can be at the seller's premises, a carrier's terminal, or another agreed-upon location. The seller is responsible for all costs and risks associated with delivering the goods to the specified location, including export clearance and loading costs. The seller must also ensure that the goods are delivered in good condition and in compliance with any applicable regulations.

Responsibilities of the Buyer

Once the goods are delivered to the specified location, the buyer assumes responsibility for all costs and risks associated with the goods. Under FAS, the buyer is responsible for all costs and risks associated with the goods from the point of delivery alongside the vessel at the specified port. This includes transportation costs, import duties, and any other costs associated with transporting the goods to their final destination.

Under FCA, the buyer is responsible for all costs and risks associated with the goods from the point of delivery to the named place. This includes transportation costs, import duties, and any other costs associated with transporting the goods to their final destination. The buyer must also ensure that the goods are received in good condition and in compliance with any applicable regulations.

Conclusion

In conclusion, while both Free Alongside Ship (FAS) and Free Carrier (FCA) involve the seller being responsible for delivering the goods to a specific location, there are key differences between the two terms that can impact the responsibilities and risks of each party involved. Understanding these differences is crucial for both buyers and sellers in international trade to ensure a smooth and successful transaction.