Watch: FAS Incoterm Explained
FAS means Free Alongside Ship. Under FAS, the seller clears the goods for export and delivers them alongside the buyer-nominated vessel at the precise named port of shipment.
Risk transfers to the buyer when the goods are placed alongside the vessel—before vessel loading begins.
Video Transcript
“What does FAS mean in international shipping?
This 30-second guide explains Free Alongside Ship under Incoterms® 2020, including export clearance, vessel loading, ocean transportation and the point where cargo risk transfers from seller to buyer.
Under FAS, the seller clears the goods for export and delivers them alongside the buyer-nominated vessel at the exact named port of shipment.
Delivery may occur on the quay or on a barge positioned beside the vessel.
Risk transfers to the buyer when the goods are placed alongside the vessel—before they are loaded aboard.
The buyer arranges vessel loading and main carriage, completes import clearance, and pays applicable duties and taxes.
FAS applies only to sea and inland waterway transport and is often suitable for bulk, break-bulk, heavy-lift or project cargo.
For standard containerized shipments delivered to a terminal before vessel loading, FCA may be more appropriate.
Always specify the exact port, berth or alongside delivery point in the sales contract.”
How FAS Divides Responsibilities
The seller prepares the goods, completes export customs clearance and delivers the cargo alongside the nominated vessel at the agreed port of shipment.
Once the goods have been placed alongside the vessel, the buyer bears the risk and normally arranges vessel loading, main ocean transportation, import customs clearance and onward delivery.
FAS is designed exclusively for sea and inland waterway transport. It is commonly considered for cargo delivered directly alongside a vessel, including bulk, break-bulk, heavy-lift and project shipments.
For containerized cargo handed to a carrier at a terminal before the vessel arrives or before loading takes place, FCA will often reflect the actual delivery process more accurately.
Read the complete FAS Incoterm guide for detailed information about delivery, export clearance, costs and risk transfer.
You can also explore all Incoterms® to compare FAS with FCA, FOB and other international trade rules.
Incoterms® is a registered trademark of the International Chamber of Commerce.
