Free Alongside Ship (FAS) Definition | UPS Supply Chain Solutions

What is Free Alongside Ship (FAS)?

An Incoterms^® rule, applicable only to ocean or waterway transport, under which the seller is responsible for clearing the goods for export and placing them alongside the vessel at the named port of delivery.

Risk of loss or damage transfers to buyer when goods are alongside the ship, and buyer is responsible for loading the goods onto the vessel, and all costs associated with that process, as well as the cost of shipment to the final destination.

When using the FAS Incoterms^® rule, it is advisable to clearly specify the named port of shipment, as well as the precise loading point within the port, in the contract of sale (and, separately, the contract of carriage).

This particular Incoterms^® rule is often used with bulk cargo. For containerized cargo, which is usually delivered to a yard or terminal prior to loading (rather than directly to the ship), this Incoterms^® rule would present complications. In such cases, consider using the FCA Incoterms^® rule instead.

Note:

When an Incoterms^® rule is included in a contract of sale, it creates legal obligations for the buyer and seller, which can have costly implications. Therefore, it is important that traders read and understand the precise wording of the Incoterms^® rules carefully and choose the rule to include in their sale contract thoughtfully. For additional information and resources on the Incoterms® rules, and to purchase the full text of the Incoterms^® 2020 rules, visit the ICC website.