Incoterms 2020
FAS Incoterm (Free Alongside Ship) – Meaning, Risk & Costs
FAS (Free Alongside Ship) under Incoterms 2020: where risk transfers, who pays for carriage, and seller and buyer obligations.
- Rule
- FAS – Free Alongside Ship (named port of shipment)
- Transport mode
- Sea and Inland Waterway
- Insurance required
- No
- Export clearance
- Seller
- Import clearance
- Buyer
- Main carriage
- Buyer
Free Alongside Ship (FAS) means the seller delivers when the goods are placed alongside the vessel (on a quay or barge) at the named port of shipment. The risk of loss or damage transfers when the goods are alongside the ship.
FAS requires the seller to clear the goods for export. This term is typically used for bulk cargo, heavy-lift, or project cargo where the goods are not containerized.
FAS is less common than FOB but useful when loading onto the vessel requires specialized equipment that the buyer's carrier will provide.
When risk transfers under FAS
When goods are placed alongside the vessel
When costs transfer under FAS
Alongside the vessel at port of shipment
Seller obligations under FAS
- Deliver goods alongside vessel at port
- Clear goods for export
- Provide proof of delivery
- Bear risks until goods are alongside ship
Buyer obligations under FAS
- Nominate vessel and notify seller
- Contract and pay for ocean freight
- Load goods onto vessel
- Handle import customs
- Pay import duties
Who is responsible for what under FAS
- Export customs clearance: Seller
- Import customs clearance: Buyer
- Loading: Buyer
- Main carriage: Buyer
- Unloading: Buyer
- Delivery to destination: Buyer
Common uses of FAS
- Bulk commodities
- Heavy-lift cargo
- Project cargo
- When buyer handles vessel loading
FAS is best for
- Non-containerized cargo
- When buyer arranges special loading
- Bulk commodity trades
Risks to watch with FAS
- Only for sea/inland waterway
- Loading coordination with buyer
- Weather delays at port
More in this directory
- FCA Incoterm (Free Carrier) – Meaning, Risk & Costs
- FOB Incoterm (Free on Board) – Meaning, Risk & Costs
- CFR Incoterm (Cost and Freight) – Meaning, Risk & Costs
- CIF Incoterm (Cost, Insurance and Freight) – Meaning, Risk & Costs
- CIP Incoterm (Carriage and Insurance Paid To) – Meaning, Risk & Costs
- CPT Incoterm (Carriage Paid To) – Meaning, Risk & Costs
Frequently asked questions
What does FAS mean in shipping?
FAS stands for Free Alongside Ship. Free Alongside Ship (FAS) means the seller delivers when the goods are placed alongside the vessel (on a quay or barge) at the named port of shipment.
When does risk transfer under FAS?
When goods are placed alongside the vessel
Who pays for main carriage under FAS?
The buyer pays for main carriage under FAS.
Who handles customs clearance under FAS?
Under FAS, the seller handles export clearance and the buyer handles import clearance.
Is insurance required under FAS?
No. FAS does not require either party to buy insurance, though either may choose to arrange it.