FAS (Free Alongside Ship)

Dictionary

The Incoterms (International Commercial Terms) are voluntary clauses established by the International Chamber of Commerce (ICC) to make responsibilities between buyers and sellers in international trade more understandable and uniform. The Incoterms cover all aspects of delivery, risk, transportation and customs clearance and can be included in contracts to avoid misunderstandings. The three most important and best-known Incoterms are EXW (Ex Works), FOB (Free on Board) and CIF (Cost, Insurance and Freight). Each of these clauses sets out different obligations and costs for the respective party from collection to final delivery. The Incoterms are adapted to current trade practices at regular intervals.

Dictionary

CFR (Cost and Freight) is an international trade clause and part of the Incoterms. It is very similar to the CIF clause, but does not include insurance cover. This means that, as with CIF, the seller bears the costs of loading and transportation of the freight to the port of destination, but insurance cover for the risk of loss or damage must be assumed by the buyer from the time of loading. CFR is used exclusively in maritime shipping and is particularly interesting for buyers who organize the insurance cover themselves, while other costs are covered up to the port of destination.

Dictionary

The international trade term CIP (Carriage and Insurance Paid to) is part of the Incoterms and describes the case where the seller assumes the costs and minimum insurance of the freight up to the destination, but not the risk of loss or damage once it has been handed over to the first carrier. Overall, CIP is very similar to CPT, with the difference of additional insurance coverage. CIP can be applied to all types of transportation.

Dictionary

One international trade clause of the Incoterms is the FCA (Free Carrier). This states that the seller delivers the goods to a specified location or to a named carrier and must bear all costs and risks up to this point, including insurance and export duties. From the point of delivery, the buyer then assumes all duties and responsibilities for the remaining stages of delivery. The clause can be used flexibly for various transportation routes such as ship or plane.

Dictionary

FOB (Free on Board) is one of the clauses defined in the Incoterms for recording responsibilities for buyers and sellers in the transportation of goods. This clause describes that the seller fulfills his delivery obligation as soon as the goods have been loaded onto the vessel designated by the buyer. After loading onto the selected vessel, the buyer bears all further costs and risks, including freight, insurance and unloading. FOB is used exclusively in shipping and facilitates the drafting of contracts for delivery.