Free Alongside Ship (FAS)

FAS divides responsibilities at a specific point in a shipment: the seller gets the goods alongside the vessel, such as on a quay or barge, and the buyer arranges the vessel and takes responsibility for the onward movement according to the rule and contract. Specify the named port and loading point, because different locations within a port can carry different handling costs and practical requirements, and writing only the port name can leave delivery uncertain.

Under the ICC's FAS guidance, the seller normally bears risk until the goods are delivered alongside the nominated ship, after which the buyer bears risk of loss or damage, and placing goods at an unrelated storage area is not automatically the same as placing them alongside the vessel. Delivery and arrival at the destination are different events, since the seller can have completed FAS delivery while the cargo still faces a long voyage, so a buyer expecting protection through arrival has misunderstood the rule's risk boundary.

FAS requires the seller to clear goods for export where applicable, but the seller is not required under that rule to handle import clearance or transit clearance through third countries. The buyer must plan those responsibilities rather than assume the exporter manages every customs stage.

The buyer normally arranges the main carriage and loading from the alongside position, so knowing the freight price alone is not enough; the team should account for relevant loading and destination costs and check the allocation against the contract and port arrangements. Insurance needs separate attention, because the risk allocation identifies who faces loss at each stage but does not itself prove that suitable cover exists.

Confirm the insured period, goods and parties instead of treating the delivery term as an insurance policy. FAS is intended for sea and inland waterway situations where delivery can occur alongside a vessel, and it is not appropriate merely because some part of a multimodal journey uses a ship.

ICC guidance points to Free Carrier where goods are handed to a carrier before they reach the alongside position, as commonly happens with container-terminal handover. Free on Board extends delivery to placing goods on board the vessel, which changes the normal risk-transfer point and who handles the loading stage, so similar abbreviations should not be used interchangeably in a purchase order.

The buyer's nomination and notices matter, because the seller needs the vessel and loading information to perform the promised delivery. Failure to provide required notice or a vessel's failure to take the goods can trigger special consequences under the applicable terms.

Incoterms allocate specified delivery tasks, costs and risks but do not replace the complete sale contract, so payment arrangements, transfer of ownership and dispute resolution need their own terms and the contract should identify the Incoterms version being used. For a non-finance manager, translate FAS into an operational handoff.

Establish the vessel, exact delivery place, notices, export process and onward arrangements. Then verify that the contract, transport plan and insurance all use the same boundary rather than allowing different departments to assume different meanings.