Shipping Terms Glossary

Shipping Terms Glossary
Free Alongside Ship (FAS)

Free Alongside Ship (FAS)

FAS terms are only applicable to ocean freight shipments.

What is FAS?

FAS is one of the 11 International Commercial Terms (Incoterms) used in trade, where the seller is responsible for export clearance and for the delivery of the goods alongside the ship nominated by the buyer at the export country.


🚨 FAS terms are only applicable to ocean freight shipments.


Point of Risk Transfer:

When the seller delivers the goods next to the ship, the risk of goods getting damaged transfers to the buyer.

What is Free Alongside Ship Incoterm (FAS)?


When should you choose FAS?

FAS is best when you’re shipping non-containerized goods or bulk cargo, such as oil, grains, or coal.

A quick example:

Simple Scenario Time:

Business Owner (Buyer): Alex is sourcing coal from China to Indonesia

Supplier (Seller): A coal manufacturer in China

Agreed Term: FAS Pier 5, Port of Shanghai, China

Seller’s duties: Responsible for export clearance and delivering the goods to Pier 5 at the Port of Shanghai.

Buyer’s duties: Arrange for loading the coal onto the ship, pay for main carriage, import clearance and delivery to destination in Indonesia.

Point of Risk Transfer: When the seller delivers the goods to Pier 5 at the Port of Shanghai.

Cost allocation. Who pays for what under FAS?

Cost allocation- who should pay what under FAS?

Rajitha Reniguntla

Rajitha Reniguntla is a supply chain enthusiast from Hong Kong. With a curious mind, she's an avid learner carrying a knack for exploring and breaking down complex ideas. She loves to learn about new things and always aims to enhance the customer experience. Outside of work, she enjoys cycling, doodling and listening to podcasts!

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