FAS: Free Alongside Ship (Incoterms® 2020)
FAS (Free Alongside Ship) means the seller clears the goods for export and places them alongside the ship the buyer has nominated, on the quay or on a barge at the named port of shipment. Risk passes to the buyer there.
Quick facts
Where risk and costs pass from the seller to the buyer
SellerBuyer
How to write it
FAS + the named port of shipment + Incoterms 2020, for example: FAS Port of Santos Incoterms 2020.
What the seller does
- Clears the goods for export.
- Brings the goods alongside the buyer's nominated vessel at the named port on the agreed date.
- Carries the risk until the goods are alongside.
- Provides the usual proof that the goods were delivered alongside.
What the buyer does
- Nominates the vessel and tells the seller the loading details.
- Pays loading onto the ship and the sea freight.
- Takes the risk once the goods are alongside and insures if it wishes.
- Clears the goods for import and pays duties and taxes.
When to use it
FAS is for sea and inland waterway transport of bulk, break-bulk or heavy cargo that is loaded directly from the quay, such as grain, logs or machinery. It is not meant for containers.
Common mistakes
- Using FAS for container shipments, where goods are handed over at a terminal, not alongside a ship. Use FCA instead.
- Not checking port customs on who pays which terminal charges.
- Naming the port without the loading berth or terminal when the port is large.
FAS vs FOB
Under FAS the seller delivers alongside the ship; under FOB it delivers on board. With FOB the seller also bears the cost and risk of loading onto the vessel.
Seller and buyer obligations, article by article (A1–A10 / B1–B10)
Incoterms 2020 gives each side ten matching articles. Here they are in plain language; the ICC text and your contract decide.
| Seller (A) | Buyer (B) | |
|---|---|---|
| A1/B1 General obligations | Provide the goods and the commercial invoice as the contract requires, plus any other proof of conformity it asks for. Documents may be paper or electronic if agreed or customary. | Pay the price as the contract requires. Documents may be paper or electronic if agreed or customary. |
| A2/B2 Delivery and taking delivery | Deliver by placing the goods alongside the ship nominated by the buyer, at the loading point indicated by the buyer at the named port of shipment, or procure goods so delivered; if no point is given, the seller may choose one. | Take delivery alongside the ship. |
| A3/B3 Transfer of risks | Bears all risk until the goods are alongside the ship. | Bears all risk from then, and earlier if its ship fails to arrive or take the goods, the ship closes for cargo early, or it fails to give notice, once the goods are identified. |
| A4/B4 Carriage | No obligation to contract carriage; if agreed, the seller contracts it on usual terms at the buyer's risk and cost. Meets transport-related security requirements up to delivery. | Contract the sea carriage from the named port of shipment at its own cost. |
| A5/B5 Insurance | No obligation to insure. At the buyer's request, risk and cost, give the information the buyer needs to buy insurance. | No obligation to insure. The buyer bears the risk from delivery, so it usually buys cargo insurance for itself. |
| A6/B6 Delivery or transport document | Provide, at its cost, the usual proof of delivery, and help the buyer obtain a transport document. | Accept the proof of delivery. |
| A7/B7 Export and import clearance | Carry out and pay for export clearance. Where applicable, help the buyer, at its request, risk and cost, with documents and information for transit and import clearance. | Carry out and pay for transit and import formalities. |
| A8/B8 Checking, packaging, marking | Pay for the checks (quality, measuring, weighing, counting) needed to deliver, and pack and mark the goods for the transport, unless the trade customarily ships them unpacked or the parties agreed specific packing. | No obligation to the seller. |
| A9/B9 Allocation of costs | Pay all costs until the goods are alongside the ship, the proof of delivery and export clearance. | Pay all costs from delivery, including loading on board, transit and import duties, the seller's costs of helping, and extra costs caused by its ship or its own failure to give notice. |
| A10/B10 Notices | Give the buyer sufficient notice that the goods have been delivered, or that the ship did not take them in time. | Give the seller sufficient notice of the ship's name, the loading point, the delivery date within the agreed period and any transport-related security requirements. |
A plain-language summary of Incoterms® 2020 for everyday use. The full rules are published by the International Chamber of Commerce (ICC), and your contract wording decides. Incoterms® is a registered trademark of the ICC.
All 11 Incoterms 2020 rules
Guides on this topic
Common questions
What is the full form and meaning of FAS?
FAS stands for Free Alongside Ship, one of the 11 Incoterms® 2020 rules. Transport: Sea and inland waterway. Delivery and risk pass to the buyer: Alongside the ship at the port of shipment. Main freight paid by: Buyer. Insurance: Not required. Export clearance: Seller. Import clearance and duties: Buyer.
Can FAS be used for containers?
It is not recommended. Containers are handed over at a terminal before loading, so FCA fits better. FAS is for cargo delivered alongside the ship.
Who pays for loading onto the ship under FAS?
The buyer. The seller's obligation ends when the goods are alongside the vessel; loading is part of the buyer's costs.
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