Incoterms® 2020 · Sea and inland waterway only
FAS (Free Alongside Ship) under Incoterms® 2020
Under FAS the seller delivers when the goods are placed alongside the vessel nominated by the buyer, on the quay or on a barge, at the named port of shipment. The seller clears the goods for export; the buyer pays for loading onto the vessel, ocean freight and bears all risks once the goods are alongside.
- Risk transfer
- Risk passes to the buyer when the goods are placed alongside the vessel nominated by the buyer at the named port of shipment.
- Cost transfer
- The seller pays the costs until the goods are alongside the vessel, including export clearance; the buyer pays loading onto the vessel, ocean freight and all costs thereafter.
- Mode of transport
- Sea and inland waterway only
- Insurance
- Not required, agreed between the parties
Who does what along the delivery chain
- 1Loading at seller's premisesSeller
- 2Export clearanceSeller
- 3Transport to port/terminal of departureSeller
- 4Loading onto main carriageBuyer
- 5Main carriageBuyer
- 6Cargo insuranceNot required / negotiable
- 7Unloading at destinationBuyer
- 8Import clearanceBuyer
- 9Import duties & taxesBuyer
- 10Delivery to final destinationBuyer
Seller's obligations
- Provide the goods, a commercial invoice and suitable packaging or preparation.
- Transport the goods to the port of shipment and place them alongside the vessel at the loading point indicated by the buyer.
- Carry out and pay for export clearance.
- Provide the usual proof of delivery.
- Notify the buyer that the goods have been delivered or that the vessel failed to take them.
Buyer's obligations
- Pay the price.
- Charter or book the vessel, pay ocean freight and notify the vessel name, loading point and delivery time.
- Pay for loading onto the vessel and all costs after delivery.
- Carry out and pay for import and transit clearance and import duties.
- Bear the risk if the vessel arrives late, fails to take the goods or closes for cargo earlier than notified.
- Decide whether to insure the goods.
Use it when
- Bulk or high-volume cargo such as timber, wood chips, minerals or grain.
- Heavy-lift or oversized cargo loaded with ship's gear or a floating crane hired by the buyer.
- The buyer charters the vessel and controls loading.
Avoid it when
- Containerised cargo, which is delivered at a container yard, not alongside the vessel.
- Air, road or multimodal transport.
- The seller cannot bring the goods to the quay or a barge alongside the vessel.
Common mistakes
- Using FAS for containers delivered at the CY.
- Not specifying the exact loading point within the port, leading to disputes over in-port transport costs.
- Not agreeing who pays for barges when the vessel is anchored offshore.
Practice in Vietnam
In Vietnam, FAS is used far less than FOB but still appears in bulk exports such as wood chips, stone, clinker or project cargo, especially when the vessel lies at a buoy or transhipment area and cargo is brought out by barge. "Alongside" is then the barge moored next to the vessel, and the cost of lifting from barge to vessel falls on the buyer. The seller must still file the export declaration and complete customs formalities at the port. The contract should name the berth or anchorage, the loading rate and how laytime is counted where the charter party contains demurrage provisions.
Worked example
A company in Quy Nhon sells wood chips to a Japanese paper mill on "FAS Quy Nhon Port, Vietnam, Incoterms® 2020". The seller trucks the chips to the port, clears export customs and stockpiles the cargo on the berth right alongside the vessel chartered by the buyer. The buyer pays for loading onto the vessel and ocean freight to Japan, and bears all risk from the moment the cargo lies on the berth beside the ship.
Frequently asked questions
How does FAS differ from FOB?
Under FAS, risk and cost pass when the goods are alongside the vessel; under FOB, when they are on board. Loading onto the vessel is for the buyer under FAS and for the seller under FOB.
Who clears export under FAS?
The seller. Since Incoterms 2000, the FAS seller has been responsible for export clearance.
What if the vessel arrives late?
If the buyer's vessel does not arrive on time or fails to take the goods, the buyer bears the risk and additional costs from the agreed delivery date, provided the goods have been clearly identified as the contract goods.
Incoterms® is a registered trademark of the International Chamber of Commerce (ICC). This content is for general guidance and does not replace legal or banking advice for a specific transaction.
Incoterms® 2020 responsibility matrix
| Rule | Loading at seller's premises | Export clearance | Transport to port/terminal of departure | Loading onto main carriage | Main carriage | Cargo insurance | Unloading at destination | Import clearance | Import duties & taxes | Delivery to final destination |
|---|---|---|---|---|---|---|---|---|---|---|
| EXW | B | B | B | B | B | – | B | B | B | B |
| FCA | S | S | S | B | B | – | B | B | B | B |
| FAS | S | S | S | B | B | – | B | B | B | B |
| FOB | S | S | S | S | B | – | B | B | B | B |
| CFR | S | S | S | S | S | – | B | B | B | B |
| CIF | S | S | S | S | S | S* | B | B | B | B |
| CPT | S | S | S | S | S | – | B | B | B | B |
| CIP | S | S | S | S | S | S* | B | B | B | B |
| DAP | S | S | S | S | S | – | B | B | B | S |
| DPU | S | S | S | S | S | – | S | B | B | S |
| DDP | S | S | S | S | S | – | B | S | S | S |
- S Seller
- B Buyer
- S* Seller obligation (insurance)
- – Not required / negotiable
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