Free Alongside Ship (FAS)
The seller delivers when the goods are placed alongside the buyer's nominated vessel at the port of shipment; sea and inland-waterway only.
Free Alongside Ship (FAS) means the seller delivers when the goods are placed alongside the buyer's nominated vessel (on the quay or on a barge) at the named port of shipment, with the seller responsible for export clearance. Risk passes when the goods are alongside the ship; loading on board, main freight, insurance, import clearance and duties are all on the buyer.
FAS is for sea and inland-waterway transport only. It mainly suits bulk commodities and heavy/oversized cargo that are handed over at the quayside for the buyer to arrange loading; it is rarely used for general break-bulk or container cargo. Practical note for Chinese exporters: the seller must bring the goods alongside and tender documents, but if the vessel is delayed or fails to berth on time, the contract should state who bears extra storage/demurrage-type costs. Container cargo, typically exchanged at the yard rather than alongside, is not suited to FAS — use FCA instead.
FAQ
- Which puts less obligation on the seller, FAS or FOB?
- FAS is the lighter one. FAS is complete "alongside the ship," so loading on board and its risk fall to the buyer; FOB is complete only once goods are "on board," so loading risk stays with the seller. Both are sea/inland-waterway only and both have the seller handle export clearance.
- Can I use FAS for containerized cargo?
- Not recommended. Containers are usually handed over at the container yard (CY), not literally placed alongside the vessel, so FAS misaligns the risk/cost split with actual operations. Use FCA for containers and multimodal.
Sources: https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/