FAS Incoterms: What Free Alongside Ship Means
for Importers (2026)

What Is FAS (Free Alongside Ship)?

FAS is one of 11 Incoterms published by the International Chamber of Commerce (ICC). It applies only to ocean freight and inland waterway transport.

Under FAS, the seller delivers goods when they are placed alongside the vessel (on the quay or on a barge) at the named port of shipment. "Alongside" means physically next to the ship, ready to be loaded.

The seller handles:

• Manufacturing and preparing goods for export
• Transport to the port
• Export customs clearance
• Placing goods alongside the vessel

The buyer handles:

• Loading goods onto the vessel
• Ocean freight
• Cargo insurance
• Import customs, duties, and taxes
• Delivery from destination port

Risk transfers when goods are placed alongside the vessel. If goods are damaged while sitting on the dock waiting to be loaded, or during the loading process, that is the buyer's risk.

Key Takeaway: FAS = seller places goods next to the ship. You load them and handle everything after. A bulk cargo term, not for containerized shipments.

FAS vs FOB: The Loading Distinction

FAS and FOB are both ocean freight-only terms used at the origin port. The single difference is loading:

Factor	FAS	FOB
Seller delivers	Alongside the vessel (on the dock)	On board the vessel (loaded)
Who loads	Buyer	Seller
Risk transfers	When goods are alongside the vessel	When goods are on board the vessel
Export clearance	Seller handles	Seller handles
Typical cargo	Bulk: grain, coal, oil, timber, raw materials	Manufactured goods, containers, pallets
E-commerce usage	Almost never	Very common

Why Loading Matters

For containerized goods, loading means a crane lifts the container onto the ship. This is a routine port operation that takes minutes and costs are negligible per container.

For bulk cargo, loading means transferring thousands of tons of grain, coal, or raw material into the vessel's hold using conveyor belts, hoppers, or specialized equipment. This is an expensive, hours-long operation that the buyer may want to control because they own or charter the vessel.

This is why FAS exists: when loading is a significant enough operation that the buyer wants to manage it directly. For e-commerce sellers shipping containers, this distinction is irrelevant. Use FOB (loading included) or DDP (everything included).

FAS Responsibilities Breakdown

Seller's Obligations Under FAS

Obligation	What It Means
A1: General	Provide goods and commercial invoice
A2: Delivery	Place goods alongside the vessel at the named port
A3: Risk transfer	Risk passes when goods are placed alongside the vessel
A4: Transport	Arrange transport to the port. No obligation for ocean freight.
A5: Insurance	No obligation
A6: Delivery document	Provide proof that goods were placed alongside the vessel
A7: Export clearance	Handle export formalities
A8: Checking/packaging	Package goods for transport to port
A9: Cost allocation	Pay all costs until goods are alongside the vessel
A10: Notices	Notify buyer that goods are alongside the vessel

Buyer's Obligations Under FAS

Obligation	What It Means
B1: General	Pay the agreed price
B2: Taking delivery	Take delivery when goods are placed alongside the vessel
B3: Risk transfer	Bear all risk from the moment goods are alongside the vessel
B4: Transport	Arrange and pay for loading, ocean freight, and onward delivery
B5: Insurance	No obligation, but recommended
B6: Delivery document	Accept the delivery document
B7: Import clearance	Handle ALL import customs, duties, and taxes
B8: Inspection	Pay for inspection if required
B9: Cost allocation	Pay loading, freight, insurance, customs, duties, and all destination costs
B10: Notices	Nominate the vessel and give seller sufficient notice of vessel name and loading time

When FAS Applies (and When It Does Not)

FAS Is Appropriate For

• Bulk commodity trade: Grain, coal, oil, minerals, timber, scrap metal
• Chartered vessels: When the buyer has chartered a vessel and controls the loading operation
• Port-to-port commodity exchanges: Where the buyer has port-side storage and loading infrastructure
• Large raw material imports: Steel coils, lumber, unprocessed agricultural products

FAS Is NOT Appropriate For

• Containerized goods: Containers are loaded by port equipment as part of the terminal operation. FOB or FCA covers this.
• E-commerce products: Consumer electronics, clothing, kitchenware, supplements, or any manufactured product shipping in containers
• Air freight: FAS is ocean freight only. Use FCA for air shipments.
• Any shipment where you do not control the loading process at the port

If your Chinese supplier quotes FAS for a container of manufactured products, they likely mean FOB. Clarify the term before agreeing. The difference is who loads the container onto the vessel, and for containerized cargo, this is always part of the standard port operation included under FOB.

Common Mistakes with FAS

Mistake 1: Accepting FAS for containerized goods.
FAS is for bulk cargo. If you are shipping containers, FOB is the correct ocean freight term (or FCA for multimodal). Accepting FAS for a container shipment creates confusion about who arranges and pays for loading.

Mistake 2: Not nominating the vessel in time.
Under FAS, the buyer must tell the seller which vessel to deliver alongside and when. If you are late with vessel nomination, the goods sit at the port on your account. Storage fees add up fast at busy Chinese ports.

Mistake 3: Confusing "alongside" with "at the port."
"Alongside" means next to the specific vessel, not just anywhere at the port. If the seller delivers to the port terminal but not alongside your vessel, the seller has not fulfilled their obligation. Coordinate the delivery location precisely.

Frequently Asked Questions

Related Incoterms and Resources