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.