CFR and FAS, A Comparison under Inco terms 2020

Difference between FAS and CFR under rules for movement of goods, ICC

Cost and Freight at a named location Vs. Free Along Side at a named location

Under FAS delivery terms, the seller completes his obligation of costs and risks under movement of goods and passes to buyer when he places the goods near a ship or other water carrier.  But under CFR delivery rules, the seller transfers costs of movement of goods to the buyer when the goods arrived at buyer’s side.

The risks under CFR terms passes from seller to buyer when the goods are placed on board the water carrier (Boat/Ship/Vessel), but under FAS terms of delivery, the seller transfers risks and costs when he places goods near to a vessel or the place where the vessel nominated by the buyer is planned.

The freight payment against main carriage under CFR is liable to pay by the seller.  But under FAS, the main carriage is undertaken by the buyer.

The buyer has control over deciding ocean freight, as main carriage is arranged by him and he holds strength in tracking shipment under FAS delivery terms.  But under CFR, the buyer has to depend upon the seller for getting export shipment details with shipping tracking, as the seller has control over freight under main carriage.

Detailed posts about CFR and FAS are explained easily with simple language in this website, you may click below to read those.

CFR  Cost and Freight

FAS  Free Alongside Ship

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