INCOTERMS

FAS

Free alongside means the Incoterm under which the seller is responsible for arranging transportation of the goods to a named ocean or inland waterway port and placing them alongside the vessel which the buyer has arranged to transport the goods. The seller is also responsible for export clearance under pre-2000 versions of incoterms this was the buyers responsibility. For this reason FAS terms required special coordination by the shipper or freight forwarder with the inland carrier and water carrier. Under FAS terms, the seller has no obligation to insure the shipment. See also definitions for ships rail, ships tackle and ship side delivery. This term is used for shipment via ocean and inland water transportation only and is different from FOB in that the seller is not responsible for placing the goods on the vessel.

FOB

Free on board the incoterm under which the seller is responsible for arranging transportation of goods to a vessel named by the buyer at a named port, and for all costs of placing the goods on board the vessel if this not included in the ocean carriers basic transportation rate which it rarely is see terminal charge, handling charge. The seller responsibility is satisfied when the cargo is on board the vessel. The seller is not responsible for costs of actually stowing the goods on board but is responsible for that portion of the terminal charges which cover services other than stowage and vessel wharfage charges. The seller is not responsible for the cost of ocean carriage, marine cargo insurance, arranging the contract of carriage unless the buyer requests his assistance with this. This Incoterm may never be used alone rather it must be clarified by stating a specific location and because of possible uncertainty as to mode.

CFR

This Incoterm may be used only with ocean or inland waterway transportation for cargo delivered directly to the vessel example cargo shipped loose or in bulk, aboard a break bulk vessel, ro-ro vessel, bulk vessel it is not used for cargo to be shipped in an intermodal container via a container vessel where the correct term for delivery to a foreign port or inland container yard is CPT.

CIF

Cost, insurance and freight the is used only for ocean or inland waterway shipment and then only for cargo shipped loose or in bulk example a break bulk vessel, ro-ro vessel or bulk vessel, and not for cargo shipped in an intermodal container via a container vessel where the CIP term is used for this other mode shipments where the seller is responsible for insuring and paying freight through to a named destination point airport.