What is the difference between FAS and FOB in shipping?

Answer 1

The most important mercantile shipping terms for the sale of goods are three: F.O.B., C.I.F. and F.A.S. In a F.O.B. (Free on Board) shipment, the risk passes to buyer at the F.O.B. point. The F.O.B. point can be the seller's factory or warehouse. In that case, the sale price quoted does not include freight which is the responsibility of the buyer as is the risk from the warehouse onward. If, however, the term is F.O.B. point of destination, seller bears the risk during transit and is responsible for payment of the freight. The term F.A.S. (Free Alongside) followed by "vessel" at some specific port is a variation of F.O.B. The sale is consummated when the seller delivers the goods alongside the vessel. The difference between the terms "F.O.B. vessel" and "F.A.S. vessel" is that in the F.O.B. the seller bears the risk until the loading has been completed. C.I.F. stands for Cost, Insurance, Freight, a term followed by the port of destination. "C.I.F. London", for example, would mean that the quoted price would include the price of the goods plus freight up to London and insurance.