Difference between FAS and CPT

CPT and FAS under Inco terms 2020

The major difference between CPT and FAS delivery rules are given below.  This comparison between FAS and CPT is done based on the Inco Terms 2020 rules published by ICC.

FAS  Vs.CPT

FAS means Free Along Side at a named place agreed by buyer and seller mutually under their contract of carriage.  CPT means the Carriage Paid To a named place mutually contracted by buyer and seller.

When comparing both CPT and FAS, the following points may be noted:

FAS delivery rule under movement of goods is meant for to use as Marine restricted and is used for movement of goods by Sea and Inland waterways whereas CPT delivery rules  is used for all modes of transports.  However, CPT is widely used to move goods from Warehouse to Warehouse, movement of LCL cargo, shipments under break bulk etc. especially to Dry ports and intermediary ports. CPT modes are used widely used for the shipments by air also.  

Under FAS, the destination named place is at seller’s side where under CPT terms, the destination named place is at buyer’s side.

Costs against main carriage is paid by seller under CPT where under FAS, the main carriage cost is under buyer’s responsibility.

The control over main carriage and freight handling is with the seller under CPT terms, but  the seller does not have any strength  over freight contract and main carriage under FAS delivery rules.

Buyer takes more risk under CPT where as the risk is minimum for FAS compared to CPT terms of delivery.  Because, under CPT terms although seller pays carriage to named placed in buyer’s country, the risks transfer from buyer to seller when goods are handed over to the Carrier.  But the risks end under FAS terms when seller places the goods near to a Vessel nominated by buyer.

Under CPT terms, buyer depends upon the seller for export general manifest details and other export data, as the seller undertakes the main carriage costs and posses control over the same.  But under FAS terms, buyer undertakes main carriage and takes over the control over main carriage freight control, thereby EGM and other export data from main shipping carrier.

Detailed posts about  FAS and CPT delivery rules are explained separately in this website.  You may click below to read:

FAS  Free Alongside Ship

CPT  Carriage Paid To

Hope the above information helps you in  differentiating CPT delivery rules with FAS delivery rules.  You may share your comments below about the difference between FAS and CPT delivery terms under Incoterms 2020.

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