Free Alongside Ship (FAS) is an Incoterm used in shipping logistics. This blog outlines what FAS shipping is, the different obligations of sellers and buyers, and when FAS logistics should be used. 

What does FAS mean?

FAS, also known as ‘Free Alongside Ship’, is an Incoterms rule that says the seller is responsible for ensuring their goods are cleared for export and placed alongside the vessel at the named port of delivery, ready for reloading. The named delivery port must be a loading dock or barge, not a container terminal.

The Free Alongside Ship Incoterm only applies to ocean or waterway transport and is most often used or bulk cargo. 

What does the FAS Incoterm dictate?

The FAS Incoterm clearly defines the responsibilities of the seller and buyer throughout the shipping process. We have outlined what sellers and buyers are responsible for and at what point they assume all risk of loss or damage to the goods below:

Seller

Buyer

  • Responsible for the entire export process, including clearing goods for export and delivering them at the named port of delivery. 

  • Assumes all risk of loss or damage to goods prior to delivery at the port.

  • Once goods have been delivered at the named port of delivery, responsibility shifts to the buyer. 

  • Responsible for loading the goods onto the vessel. 

  • Assumes all risk of loss or damage to the goods once they are loaded onto the vessel. 

  • Covers all costs associated with loading the goods onto the vessel and shipment to its destination. 

Top Tip: The risk of loss or damage to the goods transfers from the seller to the buyer once they have been loaded onto the vessel.

 

FAS Shipping Obligations

It is important to understand the different obligations for sellers and buyers when following Free Alongside Ship rules.

Obligations of the seller

When using FAS, the seller must:

  • Provide the goods, a commercial invoice, and all relevant documentation. 

  • Handle export packaging and marking. 

  • Arrange any relevant export licenses and complete customs formalities.

  • Arrange pre-carriage to the terminal.

  • Deliver the goods alongside the vessel at the named port of delivery.

  • Provide proof of delivery. 

  • Cover the cost of a pre-shipment inspection of the goods. 

 

Obligations of the buyer

As the buyer, you must:

  • Pay the price of the goods as agreed in the sales contract between yourself and the seller.

  • Cover loading charges. 

  • Arrange transportation of the goods, including main carriage, discharge, and onward carriage. 

  • Complete import formalities and handle import duties. 

  • Pay for a pre-shipment inspection for import clearance. 

 

When should FAS shipping be used?

FAS shipping is only used for goods being transported via the ocean or inland waterways.

Typically, FAS is used for bulk cargo shipments, such as oil or grain. It is also useful in situations where loading the vessel proves difficult, such as for charters, boat carriers, and heavy-lift ships.

If goods are being delivered directly to the named port of delivery by the seller, then FAS shipping should be used. When goods are being delivered to a container yard rather than a vessel, Free Alongside Ship does not apply. Instead, the FCA Incoterms rule should be used. 

View the SEKO Guide to Incoterms

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If you are looking to find out more about Incoterms and shipping logistics, visit our expert guide outlining the most commonly used Incoterms and answering frequently asked questions.