"Free Alongside Ship" (FAS) is an Incoterm used exclusively for sea and inland waterway transport. Under this term, the seller delivers the goods alongside the ship on the quay at the named port of shipment. The buyer assumes all costs and risks of loss or damage from that point forward.

FAS Definition and Scope

Under FAS, the seller must place the goods alongside the ship at the designated port of shipment. The risk passes to the buyer at that point, not when the goods are loaded onto the ship, making it suitable for bulk or heavy cargo.

Seller’s Obligations

  • Ensure the goods are cleared for export and ready alongside the ship at the named port.
  • Provide the necessary documentation to the buyer that proves the goods have been delivered to the designated point.

Buyer’s Obligations

  • Arrange and pay for the loading of the goods onto the ship.
  • Cover all costs and risks from the moment the goods are delivered alongside the ship, including transport, insurance, and unloading at the destination port.

Risk and Cost Transfer Points

The risk transfers from the seller to the buyer as soon as the goods are placed alongside the ship at the named port of shipment.

Benefits and Considerations

  • Benefits: FAS is beneficial for buyers who want to control the loading process and shipping arrangements from the port of shipment.
  • Considerations: The seller's responsibility ends when the goods are positioned alongside the ship, which may involve coordination with various logistics providers.

Common Scenarios

  • Commonly used for heavy or bulky items that require special arrangements for loading onto a vessel.
  • Ideal for situations where the buyer has better access or rates for shipping from the port of shipment.