Free Alongside Ship (FAS) is one of the Incoterms (International Commercial Terms) and applies only to sea or inland waterway transport. Under the latest Incoterms 2020, the seller is responsible for delivering the goods to the buyer's designated shipside (such as a wharf or barge) at the specified port of shipment, which constitutes delivery. Risk transfers to the buyer when the goods are placed alongside the ship. The seller must handle export customs clearance, but the buyer is responsible for loading onto the ship and all subsequent costs and risks, including loading charges, freight, insurance, and import customs clearance. When using FAS, the specified port of shipment and the specific location alongside the ship must be clearly defined. The difference from FOB is that under FOB the seller is responsible for loading the goods onto the ship, and risk transfers when the goods are loaded on board; whereas under FAS the seller only needs to deliver the goods alongside the ship, and risk transfers earlier. The difference from FCA is that FCA applies to all modes of transport, and the place of delivery can be the seller's premises or another designated location, whereas FAS applies only to waterway transport and the place of delivery is alongside the ship. Points to note: the seller should ensure the goods are delivered alongside the ship on time and promptly notify the buyer so that the buyer can arrange loading; the buyer must arrange the vessel in a timely manner and pay the loading costs.
📝 Examples
1. According to the contract, we deliver on FAS Shanghai Port terms. The seller must deliver the goods alongside the designated vessel at Shanghai Port by March 10, 2025. The buyer is responsible for loading the goods onto the vessel and bearing subsequent costs. (Note: The seller is responsible for delivering the goods alongside the vessel, and the buyer is responsible for loading and subsequent costs.)
2. This batch of equipment is traded on FAS terms. The seller is responsible for export customs clearance and placing the goods alongside the vessel designated by the buyer. The risk transfers to the buyer when the goods arrive alongside the vessel. (Note: The risk transfer point is alongside the vessel, and the seller handles export formalities.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner