FAS

What Is FAS (Free Alongside Ship) in Incoterms® 2020?

FAS (Free Alongside Ship) is a specialized Incoterm under the Incoterms® 2020 rules, published by the International Chamber of Commerce (ICC). FAS applies exclusively to ocean or inland waterway transport. Under FAS, the seller fulfills their responsibility when the goods are placed alongside the designated vessel at the named port of shipment. From this point, the buyer assumes all risks and costs, including loading, ocean freight, and further logistics.

Seller’s Responsibilities

• Delivery of Goods Alongside Vessel: Make the goods available next to the vessel (e.g., on a quay or barge) at the named port on the agreed date.
• Export Customs Clearance: Complete all formalities and obtain necessary export licenses, ensuring legal compliance for shipment from the country of origin.
• Packaging and Marking: Provide goods properly packed and labeled, suitable for the agreed mode and route of transport.
• Notification: Notify the buyer that the goods have been delivered alongside the vessel.
• Documentation: Provide the commercial invoice and any other agreed-upon documents necessary for the transaction.

Buyer’s Responsibilities

• Vessel Booking: Arrange and pay for the main carriage (sea or inland waterway), including negotiating with shipping lines and securing vessel space.
• Loading Costs: Bear all costs and risks once the cargo is alongside the vessel, including the expense and management of loading onto the ship.
• Import Customs Clearance: Handle all import procedures, including payment of import duties, taxes, and any post-arrival charges.
• Insurance: Arrange insurance for cargo if desired, as risk transfers once the goods are delivered alongside the ship.
• Further Transportation: Cover costs of ocean freight, onward transportation after arrival at the destination port, and any subsequent logistics.

FAS Responsibilities Table

Key Notes

• FAS is only suitable for sea or inland waterway shipments, not for air, road, or rail transport.
• Used for bulk or breakbulk cargo: FAS is commonly used for non-containerized shipments such as grains, minerals, or project cargo, where the goods can be easily delivered beside the vessel.
• Risk transfer: Risk passes from seller to buyer when the goods are placed alongside the vessel, not loaded on board. For shipments loaded by the seller, consider using FOB (Free On Board) Incoterm.

Incoterms 2020: Core Points Comparison Table

Term	Applicable Mode of Transport	Point of Risk Transfer	Seller's Responsibility	Buyer's Responsibility
EXW	Any mode	Upon delivery at seller’s premises	Only makes goods available; not responsible for transportation, clearance, or insurance	Responsible for all transportation, clearance, insurance costs, and risks
FCA	Any mode	Upon delivery to the carrier	Handles export clearance, delivers goods to carrier	Arranges transportation, pays all subsequent charges, assumes risk
CPT	Any mode	Upon delivery to the first carrier	Pays carriage to named destination, handles export clearance	Responsible for unloading at destination, import clearance, insurance costs, and risks
CIP	Any mode	Upon delivery to the first carrier	Pays carriage and insurance to named destination, handles export clearance	Responsible for unloading at destination, import clearance, assumes remaining risks
DAP	Any mode	Upon delivery at destination (not unloaded)	Bears costs and risks to the named destination, not responsible for unloading	Responsible for unloading, import clearance, and all related costs and risks
DPU	Any mode	After unloading at destination	Bears costs and risks for transportation and unloading at destination	Responsible for import clearance costs and risks
DDP	Any mode	Upon delivery at destination (duty paid)	Bears all costs (including import duties and taxes) and risks	Only needs to receive the goods
FOB	Sea / Inland waterway	When goods are loaded on board the vessel	Handles export clearance, pays loading charges	Arranges main carriage, pays freight and insurance, assumes risk post-loading
CFR	Sea / Inland waterway	When goods are loaded on board the vessel	Pays carriage to port of destination, handles export clearance	Handles insurance, import clearance, assumes risk after loading
CIF	Sea / Inland waterway	When goods are loaded on board the vessel	Pays carriage and insurance to destination port, handles export clearance	Responsible for import clearance, assumes risk after loading

Source: ICC Incoterms® 2020 – FAS Rule