What is FAS (Free Alongside Ship)?

FAS is a narrow rule. The seller's job ends at the ship's side, before the goods are lifted aboard. That makes it a fit for heavy or bulk cargo that is loaded by the port rather than by the seller, such as steel, timber or project cargo. For the full list of rules, see what are Incoterms.

This is a general explanation, not legal, insurance or customs advice.

Why FAS matters

The buyer controls the main journey. It books the vessel, tells the seller when and where the ship will be, and pays the freight. The seller keeps a small, clear job: get the goods to the named berth in time and clear export.

The sharp edge is the loading. Under FAS the loading onto the ship is the buyer's cost and risk. Under FOB the seller loads the goods on board, so the handover happens one step later.

Where delivery happens

Delivery is complete when the goods are placed alongside the vessel at the named port of shipment, or when the seller procures goods already delivered that way. Name the port, and where you can the berth or terminal, because handling practice differs from one terminal to the next.

Who does what under FAS

The seller

• Clears the goods for export and pays the export formalities.
• Places the goods alongside the buyer's vessel at the named port.
• Carries the risk until then.
• Provides the commercial invoice and the usual proof of delivery, such as a dock or mate's receipt.

The buyer

• Books the vessel and pays the sea freight.
• Pays loading charges and carries the risk from the moment the goods are alongside.
• Clears the goods for import and pays import duties and taxes.

Neither side has to arrange cargo insurance under FAS. The buyer should insure from the point it takes the risk.

Where risk passes

Risk passes when the goods are alongside the ship. If a crane drops a drum during loading, the loss is the buyer's.

An example from product sales

Say a metals trader's price for 200 tonnes of steel coil is $180,000 at its warehouse. The buyer's ship is due on Friday. The seller trucks the coil to the quay and clears export, which together cost $900, and gets a quay receipt. Its FAS price is $180,900.

From there the buyer pays the loading, the sea freight and the import duty.

Common mistakes with FAS

• Using FAS for containers. Containers are normally handed to a terminal before the ship arrives, so FCA fits better.
• Mixing it up with FOB. FAS stops at the ship's side. FOB stops on board.
• Vague port. "FAS Antwerp" should say which terminal.
• Skipping the ship's timetable. The seller needs the vessel's name and the delivery window from the buyer.

Related terms

• Incoterms: the 11 rules FAS belongs to.
• FOB: the seller loads the goods on board.
• CFR: the seller also pays the sea freight.
• CIF: CFR plus minimum insurance.
• Bill of lading: the carrier's receipt for the goods.

How PromptLab handles it

Choose FAS in the trade terms field on the sales order, which lists the 11 Incoterms 2020 rules, and write the named port in the order's note. If a customer always buys on FAS, store it as the account's preferred terms and each new order fills it in.

Frequently asked questions

What does FAS mean?

FAS means Free Alongside Ship. The seller delivers export-cleared goods alongside the buyer's vessel at the named port of shipment.

Who pays for loading under FAS?

The buyer. The seller's responsibility ends when the goods are alongside the ship, so loading charges and loading risk are the buyer's.

Can FAS be used for air freight?

No. FAS is for sea and inland waterway transport only. For air, road or rail use FCA or another rule for any mode of transport.

What is the difference between FAS and FOB?

Under FAS the seller delivers the goods alongside the ship. Under FOB the seller delivers them on board the ship. FOB therefore puts the loading on the seller.

Who clears export under FAS?

The seller. The buyer clears import and pays the duties and taxes.