Transportation Operations LINCS Practice Exam

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What does 'Free Alongside Ship' (FAS) mean?

Sellers must deliver goods alongside a vessel
Goods are delivered on board the ship
A term denoting the shipping rate for distant ports
Freight is only delivered when it reaches the final destination

The correct answer is: Sellers must deliver goods alongside a vessel

The term "Free Alongside Ship" (FAS) specifically means that the seller is responsible for delivering the goods alongside a vessel at a designated port. This arrangement places the responsibility on the seller to ensure that the goods are positioned next to the shipping vessel, but not actually loaded on board. The buyer then takes on the responsibility and liability for the goods once they are delivered to that point, which can include the costs related to loading them onto the vessel and shipping. This definition clarifies how the shipping responsibility is divided between the buyer and the seller, and it reflects an important aspect of international trade terms. Understanding terms like FAS is crucial for negotiations and contracts in shipping, as it determines where liability and costs transfer between parties. As a result, it is vital for those involved in transportation operations to recognize these definitions to navigate logistics efficiently.