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Trade termsFAS

Free Alongside Ship

An Incoterm for sea freight where the seller places export-cleared goods alongside the vessel at the named port of shipment.

What is Free Alongside Ship?

Free Alongside Ship (FAS) is an Incoterms 2020 rule under which the seller delivers when the goods are placed alongside the vessel nominated by the buyer, for example on the quay or on a barge, at the named port of shipment. It applies only to sea and inland waterway transport. Risk of loss or damage passes when the goods are alongside the ship, and the buyer bears all costs from that moment, including loading, main carriage and import clearance. The seller must clear the goods for export, while the buyer must give timely notice of the vessel's name, the loading point and the delivery time. FAS is mainly used for bulk, break-bulk and project cargo, such as heavy machinery lifted by ship's or port cranes.

Why it matters for forwarders

FAS is a poor fit for containers, because containerised goods are handed to the carrier at a terminal, not placed alongside a ship, and ICC recommends FCA in that case. For breakbulk and project shipments, the forwarder's job is to coordinate precise delivery to the quay with the buyer's vessel nomination, since goods left alongside without a ready vessel generate storage and expose the cargo. If the buyer fails to nominate a vessel in time, or the vessel does not take the goods, risk can pass early to the buyer, which affects insurance. Confirm in writing who pays terminal handling, lashing and stevedoring at the load port, because port practice varies. Insurance during the lift is the buyer's concern under FAS, so confirm cover starts at the quay.

FAS FAQ

What is the difference between FAS and FOB?

Under FAS the seller delivers alongside the ship; under FOB it delivers once the goods are on board. Loading costs and loading risk therefore fall on the buyer under FAS and on the seller under FOB.

Can FAS be used for container shipments?

It is technically possible but not recommended. ICC advises using FCA when goods are delivered to a container terminal.

Who handles export clearance under FAS?

The seller must clear the goods for export. The buyer handles main carriage, loading onto the vessel and import formalities.

What happens under FAS if the buyer's vessel does not arrive on time?

If the buyer fails to give the required notice, or its nominated vessel does not arrive or cannot take the goods, the buyer generally bears the additional costs and the risk from the agreed delivery date. This applies provided the goods are clearly identified as the contract goods.

Sources

  1. FOB and FAS Incoterms 2020 explained: Key differences, ICC Academy
  2. Incoterms 2020: Introduction, International Chamber of Commerce

Rules and figures change. Check the current text with the issuing body before relying on it.

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