Free Alongside Ship

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.

'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.

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).

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.

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.

FAS stands for Free Alongside Ship. Under FAS, the seller delivers goods to the named port of shipment and places them alongside the vessel nominated by the buyer. The seller handles export customs clearance. From the moment goods are placed alongside the vessel, all risk, cost, and responsibility transfer to the buyer — including loading the goods onto the ship.

A grain trader in Portugal sells wheat on FAS Porto de Aveiro terms to a buyer in Egypt. The seller transports the wheat to the port and places it alongside the vessel chartered by the Egyptian buyer. The buyer's stevedores then load the wheat into the vessel's hold. Once the wheat is alongside the ship, risk and further costs belong to the buyer.

FAS is one of eleven Incoterms defined in Incoterms 2020 (the current ICC edition, effective 1 January 2020). FAS was not significantly changed in the 2020 revision — it remains a sea-only term applying to bulk and break-bulk cargo placed alongside a vessel at the named port of shipment, with the seller responsible for export clearance.

Risk transfers when the seller places the goods alongside the named vessel at the port of shipment. Before the goods reach the vessel's side, the risk is the seller's. After placement alongside, it is the buyer's — including any risk during the loading operation onto the vessel. If the vessel is delayed, the buyer bears the cost of any storage or waiting time at the quayside.

The buyer nominates and books the vessel under FAS. The buyer must give the seller sufficient notice of the vessel's name, loading berth, and required delivery date so that the seller can arrange delivery alongside in time. If the buyer fails to nominate a vessel or does so with insufficient notice, any resulting costs or risks fall on the buyer.

No. The buyer arranges and pays ocean freight under FAS. The seller's cost obligation ends when goods are placed alongside the vessel. The buyer then pays stevedoring costs for loading, ocean freight, marine insurance, destination port charges, import customs, and delivery to final destination.

No. The buyer bears transit risk from the moment goods are placed alongside the vessel and should arrange their own marine cargo insurance. If the buyer wants the seller to arrange insurance, FOB is not appropriate either — they would need to negotiate CIF or CIP terms instead.

Under FAS, the seller must: (1) deliver goods of the correct quantity and quality as per the sales contract; (2) pack and mark goods appropriately for sea transport; (3) handle export customs clearance and pay any export duties; (4) deliver goods alongside the named vessel at the named port before the deadline agreed with the buyer; (5) provide a delivery notice so the buyer can take delivery.

FAS was designed for an era of break-bulk shipping where cargo was loaded piece by piece from a quayside. In modern trade, the vast majority of cargo moves in standard containers that are handed over at inland container depots — never physically placed 'alongside' a vessel in the quayside sense. FCA has largely replaced FAS for all but genuine bulk or break-bulk trades.