Incoterms 2020 Guide
FAS

Free Alongside Ship

Seller delivers alongside the vessel at the named port of shipment — sea and inland waterway only.

Transport Mode
Sea & Inland Waterway Only
Risk Transfers At
When goods are placed alongside the vessel at the named port
Seller Arranges
Pack and label goods for sea transport, Export customs clearance and any export duties
Buyer Arranges
Loading costs (lift on to vessel), Ocean freight to destination port

What Is FAS (Free Alongside Ship)?

Free Alongside Ship (FAS) requires the seller to deliver the goods alongside the named vessel at the specified port of shipment. 'Alongside' means on the quay (wharf) or on a lighter (barge) next to the vessel, in a position where the vessel's lifting tackle can reach. From that point, risk and cost transfer to the buyer — who is responsible for loading the goods onto the vessel, paying ocean freight, arranging insurance, handling import customs, and delivering to the final destination. FAS is a sea-and-inland-waterway-only term and is used primarily for bulk cargo such as grain, coal, iron ore, timber, and other commodities where goods are typically weighed or inspected alongside the vessel before loading.

Who Is Responsible for What?

SELLERSeller's Obligations

  • Pack and label goods for sea transport
  • Export customs clearance and any export duties
  • Transport goods to the named port of shipment
  • Deliver goods alongside the nominated vessel

BUYERBuyer's Obligations

  • Loading costs (lift on to vessel)
  • Ocean freight to destination port
  • Marine cargo insurance
  • Import customs clearance at destination
  • Import duties, VAT and local taxes
  • Discharge, delivery and last-mile costs

When to Use FAS

FAS is appropriate for bulk commodities (grain, coal, ore, timber, scrap metal) where the cargo is weighed or inspected at the quayside before loading, and the buyer's nominated vessel handles the actual loading operation. FAS is also used in trades where independent inspection of the goods alongside the vessel is contractually required before the buyer accepts title.

When NOT to Use FAS

FAS is not suitable for containerised cargo — containers are delivered to an inland container depot (CFS/CY) long before the vessel arrives, making 'alongside the vessel' impractical. Use FCA for containerised sea freight. FAS is also inappropriate for courier parcels, air freight, or road freight.

FAS FAQs

What is the difference between FAS and FOB?

Under FAS, the seller delivers goods alongside the vessel but loading is the buyer's responsibility. Under FOB, the seller loads the goods onto the vessel — risk transfers on board the ship. FAS is therefore 'one step earlier' than FOB in the logistics chain. FAS is less common and mainly used for bulk cargo where the buyer's stevedores handle loading.

What does 'alongside the vessel' mean exactly?

'Alongside the vessel' means on the quay directly beside the named vessel, or on a lighter (barge) that is positioned next to the vessel for loading. The seller must place goods in a position where the vessel's crane or other loading equipment can access them.

Who handles export customs under FAS?

The seller handles export customs clearance under FAS. This is a change from Incoterms 1990, where export clearance was the buyer's responsibility. Under Incoterms 2000 and subsequent editions, the seller is always responsible for export clearance in F-terms (FAS, FCA, FOB).

Is FAS suitable for containerised sea freight?

No. Containers are handed over at inland container depots (CFS or CY) days or weeks before the vessel arrives at port. The concept of placing a container 'alongside' a vessel is logistically irrelevant in modern containerised trade. FCA at the container depot is the correct term for containerised shipments.

What types of cargo commonly use FAS?

FAS is predominantly used for bulk commodities: grains (wheat, corn, soybeans), energy commodities (coal, petroleum products), metals (scrap steel, copper), forest products (logs, timber), and similar bulk goods that are loaded directly by crane or conveyor from the quayside into vessel holds.

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