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Customs brokerage and international shipping terms guidance

Incoterms® 2020

FAS - Free Alongside Ship

Under FAS, the seller delivers when the goods are placed alongside the vessel nominated by the buyer at the named port of loading.

Sea / inland waterway · Named port of loading

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FAS at a glance

Under FAS, the seller delivers when the goods are placed alongside the vessel nominated by the buyer at the named port of loading.

Sea or inland waterway onlyInsurance required by the rule: No

Shipment

Named location
Named port of loading
Delivery point
When goods are placed alongside the buyer-nominated vessel at the named port of loading
Risk transfer
When goods are placed alongside the vessel at the named port of loading

Responsibilities

Main carriage
Buyer arranges and pays
Export clearance
Seller
Import clearance
Buyer
Insurance
FAS does not require either party to contract for cargo insurance.

Contract

Common comparison
Compare with FOBFOB requires goods on board, not merely alongside.

Illustrative notation: FAS Port of New Orleans, Incoterms® 2020. Customize and copy below ->

Responsibility journey

Delivery point
When goods are placed alongside the buyer-nominated vessel at the named port of loading
Risk transfer
When goods are placed alongside the vessel at the named port of loading
Seller sideBuyer sideDelivery + risk transfer

  1. Seller / exporter

    Cost
    Seller

  2. Origin pickup

    Cost
    Seller

  3. Export clearance

    Cost
    Seller
    Export
    Seller

  4. Origin terminal

    Cost
    Seller
    Handoff
    Delivery + risk transfer

  5. On board vessel

    Cost
    Buyer

  6. Ocean / waterway

    Cost
    Buyer

  7. Destination terminal

    Cost
    Buyer

  8. Import clearance

    Cost
    Buyer
    Import
    Buyer

  9. Final delivery

    Cost
    Buyer

  10. Buyer / importer

    Cost
    Buyer
Text alternative for FAS: Seller-paid cost through Origin terminal. Delivery occurs at Origin terminal. Risk transfer at Origin terminal. Insurance: FAS does not require either party to contract for cargo insurance. Export clearance: Seller. Import clearance: Buyer. Main carriage: Buyer.

Who pays what under FAS?

FAS is limited to sea or inland waterway. Delivery happens alongside the ship, before loading on board.

Seller does

  • Place goods alongside the nominated vessel
  • Complete export clearance
  • Provide documents needed for the buyer to take the goods

Buyer does

  • Nominate the vessel
  • Arrange loading on board, main carriage, and import clearance

Not determined by the FAS rule alone

  • Seller insurance obligation
  • On-board delivery (that is FOB)

When to use FAS

When FAS fits

  • Bulk or break-bulk cargo placed alongside a nominated vessel

When to use FAS with caution

  • Containerized cargo that is handed over at a terminal before alongside placement

FAS shipment example

A seller places break-bulk cargo alongside the buyer’s nominated vessel at New Orleans. Risk transfers alongside. The buyer arranges loading, ocean freight, and import clearance.

Common mistakes

  • Using FAS for container terminal handoffs better suited to FCA
  • Confusing alongside delivery with on-board delivery under FOB

How do you write FAS in a contract?

Include the acronym, the exact named location, and the edition.

Contract notation builder

Build an illustrative line with the acronym, named place or port, and Incoterms® 2020. Parties must agree the exact location; this does not create a contract.

FAS Port of New Orleans, Incoterms® 2020

Edition is fixed to Incoterms® 2020. Catalog example: FAS Port of New Orleans, Incoterms® 2020

Does FAS include insurance?

FAS does not require either party to contract for cargo insurance.

FAS compared with related terms

Use these comparisons when the shipment mode, handoff point, or insurance need does not match FAS.

  • FAS vs. FOB

    FOB requires goods on board, not merely alongside.

    FOB requires goods on board, not merely alongside.

    Open FOB details ->

  • FAS vs. FCA

    FCA is usually better for container terminal handoffs.

    FCA is usually better for container terminal handoffs.

    Open FCA details ->

View all Incoterms(R) 2020 terms in the comparison matrix

Frequently asked questions

Is FAS only for water transport?

Yes. FAS Incoterms® 2020 is restricted to sea or inland waterway transport.

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Unsure which shipping term fits your movement?

Talk with a Crane trade or customs specialist about transport mode, handoff points, documentation, and clearance responsibilities. This guidance is educational and is not legal advice; the parties remain responsible for selecting contractual terms.

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Last reviewed July 30, 2026. Edition reference: Incoterms® 2020 (not a new calendar-year edition).