Incoterms: FAS, FOB, CIP, CPT Explained
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Incoterms: FAS, FOB, CIP, and CPT
What kind of cargo is used for FAS? Why?
Containers are used for FAS because the goods are carried on board a ship.
Which are the two possible cases of delivery for FCA?
- When the goods have been loaded on the transport designated by the buyer or by a person acting on its behalf.
- When the goods are made available to the seller's carrier transport, without being discharged.
Allocation of Costs and Risk for FAS and FOB
The seller is required to deliver the goods alongside the actual ship on the pier. From that point forward, the buyer bears all costs (loading cost, freight, insurance) and risks. Under FAS terms, the buyer is required to clear the goods for export and pay the cost of loading the goods.