What Is FAS? Free Alongside Ship Meaning, Risk Transfer, and FAS vs FOB
FAS shows up less in everyday container trade and more in bulk, heavy-lift, and project cargo. Delivery is complete once the seller brings the goods alongside the vessel on the quay, just before loading on board.
This guide looks at FAS alone. For a full comparison of all 11 rules, see the complete Incoterms 2020 guide.
What Is FAS?
FAS (Free Alongside Ship) is the Incoterms rule under which delivery is complete once the seller, having cleared export, places the goods alongside the vessel (on the quay or a barge) at the named port of shipment. It is for sea and inland-waterway transport only, and it sits in Group F, where the buyer pays the main freight. You write the rule and load port together in the contract, like "FAS Busan."
Who Bears What Under FAS
| Item | Bearer |
|---|---|
| Export clearance | Seller |
| Bringing goods alongside | Seller |
| Loading on board | Buyer |
| Main freight to destination port | Buyer |
| Cargo insurance | Parties' choice |
| Import clearance and duties | Buyer |
The seller is responsible only through export clearance and delivery alongside. The cost of loading on board falls to the buyer, and that is where FAS parts from FOB.
Risk Transfers the Moment Goods Are Placed Alongside
Because FAS sits in Group F, the cost divide and the risk divide roughly align. Both sit at the point where the goods are placed alongside the vessel at the load port. Past this point, even the risk during loading on board is on the buyer.
FAS vs FOB: Alongside or On Board
The most common comparison. Both are sea-only Group F rules, but the delivery and risk-transfer points differ by one step.
| Aspect | FAS | FOB |
|---|---|---|
| Delivery point | Alongside the ship (quay) | Loaded on board |
| Loading on board | Buyer | Seller |
| Risk transfer | When placed alongside | Once on board |
The core difference is who bears the cost and risk of loading on board. FAS covers the seller up to alongside; FOB up to loading on board. For how transport control works, see FOB explained.
When to Use FAS
- Bulk cargo (grain, minerals, coal): when loading requires dedicated equipment or handling and the buyer wants to control loading directly.
- Heavy-lift and project cargo: when special cranes or heavy handling are needed and it makes sense for the buyer to own the loading responsibility.
By contrast, FAS does not fit containerized cargo. Containers are handed to the carrier at the terminal/CY rather than alongside, so FCA (Free Carrier) is accurate.
Import Duty and FAS
Korea assesses import duty on a CIF-based customs value (freight and insurance included). Under an FAS contract, you must add loading, main freight, and insurance to the FAS amount to reach the customs value. Computing on the bare FAS amount understates it.
This guide is for general information. Actual contracts depend on the detailed rules and each deal, so confirm against the ICC rules and with a specialist.
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Frequently asked questions
What is FAS?
FAS (Free Alongside Ship) is the Incoterms rule under which delivery is complete once the seller, having cleared export, places the goods alongside the vessel at the named port of shipment. It is for sea and inland-waterway transport only and sits in Group F, where the buyer pays the main freight.
What is the difference between FAS and FOB?
Under FAS, delivery is complete once the goods are placed alongside the ship, and loading on board is the buyer's cost. Under FOB, delivery is complete once the goods are on board, so the seller bears loading. Risk transfers alongside for FAS and on board for FOB.
What cargo is FAS used for?
Mainly bulk cargo such as grain, minerals, or coal, and heavy-lift or project cargo, where loading requires dedicated equipment and the buyer wants to control loading directly. It does not fit containerized cargo.
Can I use FAS for containerized cargo?
No. Containers are handed to the carrier at the terminal/CY rather than alongside the ship, so FCA is the accurate rule instead of FAS, which assumes delivery alongside.
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