Maritime transportation is one of the most crucial logistics methods of global trade. When transporting goods by maritime transport, delivery methods can be carried out in various ways. Delivery methods commonly used in maritime transportation are used by many companies. Thanks to these delivery types, they can realize the most effective and efficient delivery that businesses need. Apart from the delivery methods used only for maritime transportation, there are also methods used in different types of transportation. But we will talk about the methods used in the maritime transportation sector. Methods known by the abbreviations FAS, FOB, and CFR are frequently preferred in maritime transportation.
Free Alongside Ship (FAS)
One of the delivery methods used in maritime transportation is "Free Alongside Ship (FAS)". FAS delivery method is a method in which the cargo is unloaded alongside the ship and the buyer is obliged to load the cargo from the ship to its vehicle or another means of transportation. The buyer is responsible for completing the customs clearance and other logistics of the cargo. The seller bears all the costs of bringing the cargo alongside the ship, placing it safely, and unloading it from the ship.
The FAS delivery method is a risk-sharing method between the seller and the buyer. The seller brings the cargo alongside the ship and places it securely when disembarking. The buyer's responsibility is to protect against damage or loss incidence after unloading the cargo off the ship.
Free on Board (FOB)
FOB delivery method is a method in which the buyer is responsible for the cargo from the moment it is loaded on the ship. The seller takes the cargo to the specified port and covers all the costs necessary for loading the cargo on board. However, once the cargo is loaded on board, the safe transportation of the cargo, customs clearance, and other logistics are the responsibility of the buyer.
In the FOB method, the Seller brings the cargo to the specified port and places it securely while loading the cargo onto the ship. But any damage or loss that happens in unloading the cargo from the ship will be the responsibility of the buyer. FOB delivery method is a method used especially for fast and smooth shipment of cargo.
Cost And Freight (CFR)
In this method, the seller loads the cargo onto the ship, pays the freight, and covers all the costs of the cargo to the specified port. However, the buyer is responsible for completing the customs clearance and other logistics of the cargo.
The seller loads the cargo on the ship and pays the freight. Yet, after loading and unloading the cargo on and off the ship, any damage or loss occurs, this is the buyer’s responsibility. It is also the buyer's responsibility to complete customs clearance of the cargo at the specified port and to carry out other logistical operations. The CFR delivery method is especially preferred as it is a safe method of transporting cargo, and the seller assumes responsibility for the loading of the cargo on the ship and the payment of the freight.