What Does FAS Stand For?

FAS stands for Free Alongside Ship.

 

FAS is one of the Incoterms® 2020 rules published by the International Chamber of Commerce (ICC). These internationally recognized trade rules define how responsibilities, costs and risks are divided between sellers and buyers in international transactions.

 

The term Free Alongside Ship means that the seller delivers the goods alongside the vessel nominated by the buyer at the agreed port of shipment.

 

Example:

 

FAS Port of Rotterdam, Netherlands, Incoterms® 2020

 

This means:

 

• The seller transports the goods to the port of Rotterdam.
• The seller completes export customs clearance.
• The seller places the goods alongside the buyer’s nominated vessel.
• The buyer arranges loading onto the vessel.
• The buyer pays the ocean freight.
• The buyer handles import procedures at destination.

The seller’s delivery obligation ends once the goods are positioned alongside the ship. At this point, risk transfers to the buyer.

 

What Is FAS in Logistics?

In logistics, FAS is a maritime delivery term where the seller is responsible for bringing goods to the departure port, while the buyer takes control of the shipment before loading onto the vessel.

 

Unlike many other Incoterms, FAS is limited to:

 

• Sea freight
• Inland waterway transport

It is not intended for:

 

• Air freight
• Road freight
• Rail freight
• Standard multimodal transport

 

FAS is commonly used for:

 

• Bulk commodities
• Heavy industrial goods
• Raw materials
• Steel products
• Timber
• Agricultural goods
• Project cargo

Typical examples include:

 

• Grain shipments
• Minerals
• Petrochemical products
• Large machinery components
• Breakbulk cargo

 

How Does FAS Work?

A FAS shipment follows a clearly defined logistics process.

 

1. Seller Prepares the Goods

The seller prepares the goods according to the sales agreement.

 

Responsibilities include:

 

• Manufacturing or supplying the goods
• Packaging
• Labelling
• Preparing export documentation
• Ensuring goods are ready for transport

The seller must ensure that the goods are suitable for delivery to the port and placement alongside the vessel.

 

2. Seller Organizes Transport to the Port

The seller arranges transportation from the production location to the agreed departure port.

 

This may include:

 

• Inland trucking
• Rail transport to port
• Port delivery coordination
• Handling arrangements

Example:

 

A steel manufacturer in Germany sells products under:

 

FAS Hamburg Port, Incoterms® 2020

 

The seller:

 

✓ Organizes transport to Hamburg
✓ Completes export procedures
✓ Delivers the steel alongside the nominated vessel

 

3. Seller Handles Export Customs Clearance

Under FAS, export clearance remains the responsibility of the seller.

 

This includes:

 

• Export declarations
• Export permits
• Customs documentation
• Compliance with export regulations

This makes FAS different from EXW (Ex Works), where export responsibilities may fall on the buyer.

 

4. Goods Are Delivered Alongside the Vessel

The defining point of FAS is the delivery location.

 

The seller must place the goods:

 

• Alongside the vessel
• At the agreed port
• At the location specified by the buyer

Examples:

 

• On the quay
• On a barge next to the vessel
• At a designated loading area

The goods are not yet loaded onto the ship.

 

5. Buyer Arranges Loading and Main Transport

After delivery alongside the ship, the buyer takes responsibility.

 

The buyer manages:

 

• Loading onto the vessel
• Ocean freight contract
• Marine transport
• Import procedures
• Destination delivery

The buyer also selects and contracts the shipping carrier.

 

FAS Responsibilities: Seller vs Buyer

 

 

When Does Risk Transfer Under FAS?

The risk transfer point is one of the most important aspects of FAS.

 

Under FAS:

 

Risk transfers from the seller to the buyer once the goods have been placed alongside the vessel at the agreed port of shipment.

 

This means:

 

Before delivery alongside ship:

 

• Seller carries transport risk.
• Seller pays related costs.

After delivery alongside ship:

 

• Buyer assumes risk.
• Buyer manages loading and international transport.

 

Example:

 

A mining company exports raw materials under:

 

FAS Port of Antwerp, Incoterms® 2020

 

The seller:

 

✓ Delivers cargo to Antwerp port
✓ Places cargo alongside vessel

After that:

 

✓ Buyer assumes risk
✓ Buyer arranges loading
✓ Buyer pays ocean freight

 

FAS vs FOB – What Is the Difference?

FAS and FOB are both Incoterms used for sea freight, but the delivery point differs.

 

 

The key difference:

 

Under FAS, the seller delivers next to the vessel. Under FOB, the seller must load the goods onto the vessel.

 

FAS vs FCA – What Is the Difference?

FAS and FCA both involve delivery before the main transport begins, but they apply to different transport situations.

 

 

FCA is generally more suitable for containerized shipments and multimodal logistics.

 

FAS vs CFR – What Is the Difference?

 

 

Under CFR, the seller organizes and pays ocean freight, while under FAS, the buyer controls the main transportation.

 

FAS vs CIF – What Is the Difference?

 

 

CIF provides a more complete delivery solution because the seller arranges transport and insurance.

 

Advantages of FAS for Buyers

Control Over Ocean Freight

The buyer selects:

 

• Shipping line
• Vessel
• Transport route
• Freight agreement

This is beneficial for companies with established maritime logistics networks.

 

Better Freight Cost Management

Large buyers can negotiate their own ocean freight rates.

 

Suitable for Bulk Cargo Operations

FAS provides flexibility for commodities and specialized maritime shipments.

 

Advantages of FAS for Sellers

Limited Transport Responsibility

The seller does not manage:

 

• Ocean freight
• Vessel booking
• Import logistics

 

Clear Export Responsibility

The seller manages export procedures while avoiding international transport obligations.

 

Suitable for Port-Based Industries

Industries near ports can efficiently use FAS for direct maritime deliveries.

 

Challenges of FAS

Although FAS can be useful, companies should consider several limitations.

 

Limited to Sea and Inland Waterway Transport

FAS cannot be used for:

 

• Air freight
• Road transport
• Rail-only transport

For multimodal logistics, FCA is often more appropriate.

 

Not Ideal for Container Shipments

Modern container logistics often involves delivery to container terminals before vessel arrival.

 

Because FAS requires delivery alongside the vessel, it is less practical for standard containerized cargo.

 

For containers, FCA is often recommended instead.

 

Buyer Must Coordinate Vessel Details

The buyer must provide:

 

• Vessel name
• Loading location
• Delivery timeframe

Poor coordination can create delays and additional costs.

 

FAS in Breakbulk Logistics

FAS is particularly relevant for breakbulk cargo.

 

Examples include:

 

• Steel structures
• Heavy machinery
• Industrial components
• Large project cargo

These shipments often require:

 

• Port coordination
• Specialized handling
• Direct vessel loading

 

FAS in Project Logistics

Large infrastructure projects often use FAS when cargo must be delivered directly to a vessel.

 

Examples:

 

• Energy projects
• Construction equipment
• Industrial plants
• Offshore components

Successful FAS shipments require coordination between:

 

• Manufacturers
• Port operators
• Shipping companies
• Freight forwarders

 

FAS and Time-Critical Maritime Logistics

Although mainly used for planned sea freight, FAS shipments can involve time-sensitive operations.

 

Important factors include:

 

• Vessel schedules
• Port availability
• Export documentation
• Loading coordination

Professional logistics management helps prevent:

 

• Vessel delays
• Storage costs
• Port congestion issues

 

FAS Logistics Solutions from OnTime Transport Group

OnTime Transport Group supports companies with international transport solutions for complex supply chains.

 

For FAS shipments, successful delivery requires coordination between:

 

• Exporters
• Ports
• Shipping companies
• Customs partners
• Receiving locations

Our services include:

 

• International freight solutions
• Sea freight coordination
• Project logistics
• Customs support
• Multimodal transport solutions
• Time-critical logistics

By combining global transport expertise with reliable logistics coordination, OnTime Transport Group helps companies manage international shipments efficiently and transparently.

 

Frequently Asked Questions About FAS

What does FAS stand for?

FAS stands for Free Alongside Ship.

 

What does FAS mean in shipping?

FAS means the seller delivers goods alongside the buyer’s nominated vessel at the agreed port of shipment.

 

Who pays freight under FAS?

The buyer pays the main ocean freight after delivery alongside the vessel.

 

Who handles export clearance under FAS?

The seller handles export customs clearance.

 

Does FAS include insurance?

No. Neither party is required to arrange insurance under FAS. The buyer may arrange cargo insurance if required.

 

Can FAS be used for container shipments?

Technically possible, but generally not recommended because container delivery normally occurs at terminals rather than directly alongside vessels.

 

What is the difference between FAS and FOB?

Under FAS, delivery occurs alongside the vessel. Under FOB, delivery occurs after the goods are loaded onto the vessel.