FAS, or Free Alongside Ship, is an Incoterms rule for sea and inland-waterway transport under which the seller delivers goods alongside the nominated vessel at the named port of shipment. Risk transfers at that point.
What does the seller handle?
The seller prepares the goods, completes export clearance and places them alongside the vessel at the agreed quay, barge or loading point.
What does the buyer handle?
The buyer arranges loading, main carriage, insurance, import clearance and onward transport after delivery alongside the vessel.
When is FAS used?
It can suit bulk, heavy or project cargo delivered directly beside a vessel. It is generally not a good fit for container cargo delivered to a terminal before the vessel is known.
FAS versus FOB
Under FAS, delivery and risk transfer occur alongside the vessel. Under FOB, they occur when goods are placed on board.
What should the contract specify?
Identify the named port, exact delivery point, nominated vessel, timing, loading responsibility and evidence of delivery.
