FAS Incoterms: Free Alongside Ship and When It Still Applies
FAS, Free Alongside Ship, is one of the four sea rules. The seller delivers the goods alongside the vessel nominated by the buyer at a named port. Risk passes at that point.
What alongside means
Alongside means placed on the quay next to the ship, or on a barge next to it, within reach of the vessel's loading equipment. It does not mean on board. The loading itself is the buyer's responsibility and the buyer's cost.
The seller clears the goods for export. That is worth noting, because it distinguishes FAS from EXW, where export clearance falls to the buyer.
Where risk passes
Risk passes when the goods are placed alongside the vessel. If the cargo is damaged during loading, that is the buyer's loss. If it is damaged while waiting on the quay before the vessel is ready, that is also the buyer's loss, because delivery was already complete.
That waiting period deserves attention. Bulk and project cargo can sit at a port for days or weeks before a suitable vessel arrives, and under FAS the buyer carries the risk throughout. Whether that is acceptable depends on what the buyer's cargo policy covers while goods are stationary at a port.
When FAS is the right rule
FAS was written for cargo that is loaded loose onto a vessel rather than in containers. It remains genuinely useful for:
- Bulk commodities such as grain, ore, cement and fertilizer
- Project and heavy lift cargo where loading requires specialist cranes the buyer arranges
- Situations where the buyer has a chartered vessel and wants to control loading entirely
In Abu Dhabi and the wider Gulf energy sector this still comes up regularly, which is why we cover the sea rules in depth in our Abu Dhabi sessions.
When not to use FAS
Never for containers. A container is delivered to a terminal, not placed alongside a ship, so the delivery point described by the rule does not correspond to anything that actually happens. Use FCA.
Also avoid FAS where the buyer has no presence at the load port and no ability to supervise loading, since loading is the buyer's responsibility from the quayside onward.
Common mistakes
Treating FAS as though the seller loads. It does not. Loading is the buyer's, which is the whole difference between FAS and FOB.
Overlooking the waiting risk. Goods sitting on a quay awaiting a vessel are at the buyer's risk under FAS.
Where this rule sits
FAS is the lightest of the four sea rules for the seller. FOB extends the seller obligation to loading, CFR adds the freight, and CIF adds insurance on top.
For the full set, see our guide to all 11 Incoterms 2020 rules, or work through how to choose the right rule for a given shipment. Our Mastering Incoterms 2020 course covers every rule with worked examples from Gulf trade lanes.
Frequently asked questions
What does FAS mean in Incoterms?
Free Alongside Ship. The seller delivers the goods alongside the vessel at a named port and clears them for export. Loading onto the vessel is the buyer responsibility.
Who loads the vessel under FAS?
The buyer. That is the main difference between FAS and FOB, where the seller is responsible until the goods are on board.
Can FAS be used for containers?
No. Containers are delivered to a terminal rather than placed alongside a vessel, so the rule does not match what happens. FCA is the correct choice.
When is FAS still useful?
For bulk commodities and project or heavy lift cargo loaded loose onto a vessel, particularly where the buyer has chartered the ship and wants to control loading.
