Free Alongside Ship (FAS) – Incoterms 2020 in detail

The most recent form of International Commercial Trade Terms (Incoterms) was published in 2020. One of these Incoterms is Free Alongside Ship (FAS).

FAS is used in international trade by sea and inland waterways as defined by the International Chamber of Commerce (ICC). It states that sellers must place goods at a specific port of shipment alongside or near a vessel. Until that delivery is fulfilled, the seller is responsible for the goods. Upon reaching the predetermined point alongside the vessel, the responsibility and risk switch from the seller to the buyer. FAS is mostly used for cargo shipments in bulk, non-containerized goods or generally when loading the vessel might be difficult. FAS defines the payment to the seller as well as the time, place and specific vessel to be used for delivery. Furthermore, it defines who bears the responsibility for loading the goods and who bears the cost of freight and insurance.

In a situation, a US-based exporter agrees to sell 200 boxes of apples to a buyer in the UK under the FAS term. The seller must package and load the apples onto a transportation vehicle, arrange for export customs clearance and duties, deliver them alongside the vessel at the designated port of shipment, then issue an invoice and other necessary documentation. Once this has been completed, all costs and risks associated with transporting the goods are handled by the buyer, who must arrange for loading onto the vessel, main carriage, port handling fees, import customs clearance and duties, and delivery to the final destination.