FAS (Free Alongside Ship) is an Incoterms® 2020 rule exclusively reserved for sea and inland waterway transport. The seller delivers the goods by placing them alongside the vessel (e.g. on a quay or a barge) nominated by the buyer at the named port of shipment. The seller is responsible for export clearance.
Risk transfers at the moment the goods are placed alongside the vessel at the named port of shipment. From that point, the buyer bears all risks of loss of or damage to the goods.
The buyer is responsible for main carriage, insurance, and import clearance. The buyer must nominate the vessel and notify the seller of the vessel name, the loading point, and the required delivery date within the agreed period.
FAS is particularly suited to the trade of bulk goods (minerals, grain, timber, coal) loaded directly alongside the vessel without containerisation. It is not appropriate when goods are handed over to the carrier at a container terminal before being placed alongside the vessel - in such cases, FCA is recommended.
"Or procure" clause: FAS provides for the possibility for the seller to "procure" goods already delivered alongside the vessel, which is common in string sales in commodity trades, where the same cargo is sold multiple times during transit.
Costs are allocated at the point of delivery: the seller bears all costs up to placing the goods alongside the vessel (including export), while the buyer bears ocean freight, insurance, and import costs.
What does "alongside ship" mean under FAS Incoterms 2020?
Under FAS, the seller delivers by placing the goods alongside the vessel - meaning on the quay, on a jetty, or in a barge or lighter - at the named port of shipment. The goods do not need to be loaded on board the vessel. This is the critical distinction from FOB, where goods must be placed on board. "Alongside" refers to the position where the vessel's loading equipment can reach the goods.
Who is responsible for loading goods on board under FAS?
The buyer is responsible for loading the goods on board the vessel under FAS. Once the seller places the goods alongside the vessel, all loading operations - including hoisting, crane work, and stowage on board - are at the buyer's cost and risk. This is the fundamental difference from FOB, where the seller bears loading costs and risks.
Can FAS be used for containerized cargo?
No, FAS is not appropriate for containerized cargo. Containers are typically delivered to a terminal, not alongside a specific vessel. There is a grey area between terminal handover and placement alongside the ship that makes the risk transfer point unclear. The ICC recommends using FCA for all containerized shipments, regardless of transport mode.
What is the difference between FAS and FOB?
The key difference is the delivery and risk transfer point. Under FAS, the seller delivers alongside the vessel (on the quay) and risk transfers at that point. Under FOB, the seller must load the goods on board the vessel, and risk transfers only when goods are on board. FAS therefore places loading costs and risks on the buyer, while FOB places them on the seller.
Who arranges export customs clearance under FAS?
The seller is responsible for all export customs formalities under FAS, including export licences, security clearances, and pre-shipment inspections. This has been the case since Incoterms 2000, which reversed the earlier practice where the buyer handled export clearance under FAS. Import clearance remains the buyer's exclusive responsibility.
When does risk transfer from seller to buyer under FAS?
Risk transfers at the moment the goods are placed alongside the vessel at the named port of shipment. Any loss or damage occurring before this point - during inland transport, warehousing, or port handling to reach the quayside - remains the seller's responsibility. Once the goods are alongside the vessel, all risks pass to the buyer, including during loading on board.
Is FAS suitable for bulk commodity trade?
Yes, FAS is particularly well suited to bulk commodity trading such as minerals, grain, timber, coal, and crude oil. Delivery alongside the vessel corresponds to the traditional port practice of staging bulk goods on the quay or in barges before loading. The "or procure" clause also supports the string sales common in commodity markets.
Who arranges and pays for ocean freight under FAS?
The buyer arranges and pays for ocean freight under FAS. The seller's obligations end once the goods are placed alongside the vessel at the port of shipment. The buyer is then responsible for loading on board, main ocean carriage, insurance, unloading at destination, and import clearance. FAS gives the buyer maximum control over the maritime transport chain.
Can FAS be used for inland waterway transport?
Yes, FAS can be used for both sea and inland waterway transport. The concept of delivering "alongside the vessel" applies equally to river barges and inland waterway craft. However, FAS must not be used for road, rail, air, or multimodal transport. For non-maritime modes, FCA is the appropriate Incoterm.
How does FAS affect customs valuation?
The FAS price includes all costs up to placing goods alongside the vessel and export formalities. To determine customs value in the EU (assessed on a CIF basis), the importer must add loading-on-board costs, ocean freight to the first EU port of entry, and insurance. The FAS price is lower than both FOB and CFR prices because it excludes loading and freight.
Is insurance mandatory under FAS?
No, neither party has a contractual obligation to arrange insurance under FAS. However, the buyer bears all risks from the moment goods are placed alongside the vessel, including during loading on board and ocean transit. Marine cargo insurance is therefore strongly recommended for the buyer. The seller must provide insurance information upon request at the buyer's cost.
What are the seller's obligations under FAS?
The seller must deliver goods alongside the vessel at the named port, handle all export customs formalities, provide proof of delivery, and bear all costs and risks until the goods are alongside the vessel. The seller has no obligation to arrange transport or insurance. The seller must also notify the buyer that goods have been delivered alongside the vessel.
What does the "procure" clause mean in FAS?
The "or procure" clause allows the seller to fulfil its delivery obligation by procuring goods already placed alongside the vessel, rather than physically delivering new goods. This is essential for string sales in commodity trading, where a cargo of bulk goods may be resold multiple times while at port. The intermediate seller simply "procures" goods already positioned alongside.
What are the most common FAS mistakes?
The most frequent errors are using FAS for containerized shipments (use FCA instead), confusing FAS with FOB by assuming loading on board is the seller's responsibility, the buyer failing to nominate the vessel or communicate loading details in time, not specifying the precise alongside point within the port, and neglecting marine cargo insurance despite the buyer bearing risk from the quayside.
Common mistakes
1Using FAS for containerised goods when the ICC recommends FCA for this type of shipment.
2Confusing FAS and FOB by thinking risk transfers on board the vessel, when under FAS it transfers alongside the vessel (on the quay).
3The buyer failing to notify the vessel name, loading point, or delivery date in due time, ending up bearing early risk transfer.
Seller vs buyer obligations
Obligation
Seller
Buyer
Export formalities
Loading
Main transport
Transport insurance
Unloading
Import formalities
Risk transfer diagram
ICC Explanatory notes
Delivery and transfer of risks
Under FAS, "Free Alongside Ship (named port of shipment)" means that the seller delivers the goods by placing them alongside the vessel nominated by the buyer (e.g. on a quay or a barge) at the loading point indicated by the buyer at the named port of shipment, or by procuring goods so delivered.
The seller must deliver the goods:
on the agreed date, or
at the time within the agreed period notified by the buyer under B10, or
if no such time is notified, at the end of the agreed period,
in the manner customary at the port.
Critical point: risk transfers at the precise moment the goods are placed alongside the vessel. Before that point, the seller bears all risks. After, the buyer is responsible, even if the goods have not yet been loaded on board.
If the buyer has not indicated a specific loading point, the seller may select the point that best suits its purpose within the named port of shipment.
Applicable mode of transport
FAS is exclusively reserved for sea and inland waterway transport. It must not be used for air, road, rail, or multimodal transport.
This restriction is inherent to the nature of the delivery: the goods are physically placed alongside the vessel, which only makes sense in a maritime or inland waterway context.
Important: FAS is not appropriate when goods are handed over to the carrier at a container terminal before being placed alongside the vessel. In such cases, the risk transfer at the terminal (rather than alongside the vessel) makes FCA more suitable and more secure for both parties.
FAS is therefore primarily used for bulk goods or conventional (non-containerised) cargoes loaded directly from the quay.
Place and precise point of delivery
The parties are well advised to specify as clearly as possible the loading point within the named port of shipment. A precise loading point makes it clear when delivery takes place and when risk transfers.
If the specific point is not indicated by the buyer, the seller may select the point that best suits its purpose within the named port of shipment. That point then becomes the point of delivery.
Recommended wording: "FAS [name of port of shipment, precise loading point] Incoterms® 2020"
Example: FAS Port of Rotterdam, Europoort Bulk Terminal - Incoterms® 2020
Recommendation: the buyer should precisely indicate the loading point as well as the vessel name, to avoid any ambiguity about the exact point of risk transfer.
String sales and "or procure" clause
FAS provides for the possibility for the seller to "procure" goods already delivered alongside the vessel, rather than delivering newly shipped goods. This clause is essential in the context of string sales.
In international commodity trading (minerals, grain, oil, metals), the same cargo may be resold multiple times while in transit or waiting at port. Each intermediate sale does not require a new physical delivery: the intermediate seller "procures" the goods already placed alongside the vessel by the initial seller.
This clause facilitates international chain trading operations and reflects the practices of commodity trade.
Key point: in a string sale, only the first seller physically delivers the goods alongside the vessel. Intermediate sellers fulfil their delivery obligation by "procuring" goods already so delivered.
Critical points
Sea transport only
FAS is exclusively maritime - never use for containers handed over at a terminal.
FAS must only be used for sea or inland waterway transport. This is a fundamental point often overlooked:
FAS is designed for goods placed physically alongside the vessel (on a quay, in a barge, on a jetty).
It is not appropriate for containerised goods handed over at a container terminal before being brought alongside the vessel.
For containerised shipments, FCA is the recommended Incoterm, as risk transfers upon handover to the carrier at the terminal.
Risk: using FAS for containers creates a grey area between handover at the terminal and placement alongside the vessel, during which responsibility for risks is ambiguous.
Recommendation: reserve FAS for bulk goods (minerals, grain, timber, coal) and conventional cargoes loaded directly from the quay.
Export clearance by the seller
The seller handles export - the buyer handles import, carriage, and insurance.
Under FAS, the seller must carry out and pay for all export clearance formalities:
Export licence
Security clearance for export
Pre-shipment inspection
Any other official authorisation
This is a change from earlier versions of the Incoterms where, under FAS, export formalities were the buyer's responsibility. Since Incoterms® 2000, the seller has been responsible for export clearance.
The buyer, on the other hand, is responsible for:
All import and transit formalities
The contract of sea carriage
Insurance (if desired)
Recommendation: the seller should ensure all export licences and authorisations are in place before committing contractually under FAS.
Vessel nomination by the buyer
The buyer must nominate the vessel in due time - failure = early risk transfer to the buyer.
Under FAS, the buyer has the obligation to nominate the vessel and notify the seller of the vessel name, the loading point, and the delivery date. If the buyer fails in this obligation:
If the buyer fails to give notice under B10, or
If the nominated vessel fails to arrive on time, fails to take the goods, or closes for cargo earlier than the date notified under B10,
then the buyer bears all risks of loss of or damage from:
(i) the agreed date, or in the absence thereof,
(ii) the date selected by the buyer under B10, or
(iii) the end of any agreed period,
provided the goods have been clearly identified as the contract goods.
Recommendation: the buyer must notify the vessel name, loading point, and transport security requirements sufficiently in advance to allow the seller to deliver on time.
Detailed seller obligations (A1-A10)
Article A1General obligations
The seller must provide the goods and the commercial invoice in conformity with the contract of sale and any other evidence of conformity that may be required by the contract.
Any document to be provided by the seller may be in paper or electronic form as agreed or, where there is no agreement, as is customary.
Article A2Delivery
The seller must place the goods alongside the vessel nominated by the buyer at the loading point indicated by the buyer at the named port of shipment, or procure goods so delivered.
The seller must deliver the goods:
on the agreed date, or
at the time within the agreed period notified by the buyer under B10, or
if no such time is notified, at the end of the agreed period,
in the manner customary at the port.
If no specific loading point has been indicated by the buyer, the seller may select the point that best suits its purpose within the named port of shipment.
Article A3Transfer of risks
The seller bears all risks of loss of or damage to the goods until they have been delivered in accordance with A2, with the exception of loss or damage in the circumstances described in B3.
Article A4Carriage
The seller has no obligation to the buyer to make a contract of carriage.
However, the seller must provide the buyer, at the buyer's request, risk and cost, with any information in the possession of the seller, including transport-related security requirements, that the buyer needs for arranging carriage.
If agreed, the seller must contract for carriage on the usual terms at the buyer's risk and cost.
The seller must comply with any transport-related security requirements up to delivery.
Article A5Insurance
The seller has no obligation to the buyer to make a contract of insurance. However, the seller must provide the buyer, at the buyer's request, risk and cost, with information in the possession of the seller that the buyer needs for obtaining insurance.
Article A6Delivery/transport document
The seller must provide the buyer at the seller's cost with the usual proof that the goods have been delivered in accordance with A2.
If that proof is not a transport document, the seller must assist the buyer, at the buyer's request, risk and cost, in obtaining a transport document.
Article A7Export/import clearance
a) Export clearance: where applicable, the seller must carry out and pay for all export clearance formalities required by the country of export, such as:
export licence;
security clearance for export;
pre-shipment inspection; and
any other official authorisation.
b) Assistance with import clearance: where applicable, the seller must assist the buyer, at the buyer's request, risk and cost, in obtaining any documents and/or information related to import clearance formalities.
Article A8Checking/packaging/marking
The seller must pay the costs of those checking operations (such as checking quality, measuring, weighing, counting) that are necessary for the purpose of delivering the goods in accordance with A2.
The seller must, at its own cost, package the goods, unless it is usual for the particular trade to transport the type of goods sold unpackaged. The seller must package and mark the goods in the manner appropriate for their transport, unless the parties have agreed on specific packaging or marking requirements.
Article A9Allocation of costs
The seller must pay:
a) All costs relating to the goods until they have been delivered in accordance with A2, other than those payable by the buyer under B9.
b) The costs of providing the usual proof to the buyer under A6 that the goods have been delivered.
c) Where applicable, duties, taxes and any other costs related to export clearance under A7(a).
d) The buyer for all costs and charges related to providing assistance in obtaining documents and information in accordance with B7(a).
Article A10Notices
The seller must give the buyer sufficient notice either that the goods have been delivered in accordance with A2 or that the vessel has failed to take the goods within the time agreed.
Detailed buyer obligations (B1-B10)
Article B1General obligations
The buyer must pay the price of the goods as provided in the contract of sale.
Any document to be provided by the buyer may be in paper or electronic form as agreed or, where there is no agreement, as is customary.
Article B2Taking delivery
The buyer must take delivery of the goods when they have been delivered under A2.
Article B3Transfer of risks
The buyer bears all risks of loss of or damage to the goods from the time they have been delivered under A2.
If:
a) the buyer fails to give notice in accordance with B10; or
b) the vessel nominated by the buyer fails to arrive on time, or fails to take the goods, or closes for cargo earlier than the time notified under B10,
then, the buyer bears all risks of loss of or damage to the goods:
(i) from the agreed date, or in the absence of an agreed date,
(ii) from the date selected by the buyer under B10, or
(iii) from the end of any agreed period for delivery,
provided that the goods have been clearly identified as the contract goods.
Article B4Carriage
The buyer must contract at its own cost for the carriage of the goods from the named port of shipment, except where the contract of carriage is made by the seller as provided for in A4.
Article B5Insurance
The buyer has no obligation to the seller to make a contract of insurance.
Article B6Delivery/transport document
The buyer must accept the proof of delivery provided under A6.
Article B7Export/import clearance
a) Assistance with export clearance: where applicable, the buyer must assist the seller at the seller's request, risk and cost in obtaining any documents and/or information related to all export clearance formalities.
b) Import clearance: where applicable, the buyer must carry out and pay for all formalities required by any country of transit and the country of import, such as:
import licence and any licence required for transit;
security clearance for import and any transit;
pre-shipment inspection; and
any other official authorisation.
Article B8Checking/packaging/marking
The buyer has no obligation to the seller.
Article B9Allocation of costs
The buyer must pay:
a) All costs relating to the goods from the time they have been delivered under A2, other than those payable by the seller under A9.
b) The seller for all costs and charges related to providing assistance in obtaining documents and information in accordance with A4, A5, A6 and A7(b).
c) Where applicable, duties, taxes and any other costs related to transit or import clearance under B7(b).
d) Any additional costs incurred if the buyer fails to give notice under B10, or if the vessel nominated by the buyer fails to arrive on time, fails to take the goods, or closes for cargo earlier than the time notified under B10, provided that the goods have been clearly identified as the contract goods.
Article B10Notices
The buyer must give the seller sufficient notice of the transport security requirements, the vessel name, the loading point, and the selected delivery date within the agreed period.
FAS vs FOB comparison
Critère
FAS
FOB
Risk transfer point
Alongside the vessel (on the quay)
On board the vessel
Loading on board
Buyer
Seller
Loading costs
Buyer
Seller
Risk during loading
Buyer
Seller
Typical use
Bulk, conventional cargoes
Bulk and conventional, more common
Export clearance
Seller
Seller
Critère
FAS
FCA
Mode of transport
Sea only
All modes (including multimodal)
Delivery point
Alongside vessel at port
To carrier (named place)
Containers
Not suitable
Recommended for containers
Export clearance
Seller
Seller
Main carriage
Buyer
Buyer
Impact on customs value
Incoterm FAS belongs to group FOB. This group determines which adjustments (AK/BA) are applied to the invoiced price to calculate customs value.
Bulk goods: minerals, grain, timber, coal, raw materials loaded directly alongside the vessel.
Commodity trading: ideal for string sales thanks to the "or procure" clause.
Pure sea transport: when delivery takes place physically alongside the vessel at a sea or river port.
Seller controlling export: the seller handles export formalities, simplifying the foreign buyer's obligations.
When to avoid FAS?
Containerised goods: use FCA, as containers are handed over at the terminal before being placed alongside the vessel.
Multimodal transport: FAS is exclusively maritime. For multimodal, use FCA, CPT, or CIP.
If the seller wants to control sea carriage: use CFR or CIF.
If the buyer wants the seller to load on board: use FOB, where risk transfers once the goods are on board.
Recommended contractual clauses
Port and loading point: specify the port of shipment and the precise loading point alongside the vessel ("FAS [port, quay/jetty] Incoterms® 2020").
Vessel name: the buyer must notify the vessel name in sufficient time to allow the seller to bring the goods to the port.
Loading window: specify delivery dates or periods and the vessel's loading window.
Nature of goods: verify that the goods are suitable for alongside-ship loading (bulk, conventional) and not containerised.
Security requirements: the buyer must communicate transport-related security requirements.
Analysis by profile
Advantages
Maîtrise du transport principal.
Disadvantages
Obligations fortes. Possible difficultés entre le moment où le vendeur s'organise pour livrer la marchandise et l'arrivée du navire. L'acheteur doit gérer et coordonner le transport maritime, il doit être familiarisé avec la logistique de transport et avoir identifié en amont des partenaires de confiance.
Recommendations
Recourir à cet Incoterm pour les transports maritimes de marchandises en vrac en grosses quantités.
Anticiper la coordination avec le vendeur concernant les détails logistiques (heure et lieu exacts de la mise à disposition des marchandises le long du navire).
Assurance transport principal conseillée.
Important : Transport insurance is recommended for this Incoterm.
Comparative analysis (radar)
FAS
Compare with
Common mistakes
1
Using FAS for containerised goods when the ICC recommends FCA for this type of shipment.
2
Confusing FAS and FOB by thinking risk transfers on board the vessel, when under FAS it transfers alongside the vessel (on the quay).
3
The buyer failing to notify the vessel name, loading point, or delivery date in due time, ending up bearing early risk transfer.
4
Not specifying the precise loading point within the port of shipment, leaving the seller to choose the point that best suits its purpose.
5
Ignoring the "or procure" clause in string sales, unnecessarily complicating commodity resale chains.
FAS 2020: Delivery Alongside Ship - Maritime Only - The Trade Hub