In the Incoterms rules for FAS (short for “Free Alongside Ship”), the seller clears goods for export and places them alongside the vessel at the named port of departure. The named port of departure location can be a loading dock or a barge, but not a container terminal. The buyer is responsible for loading the freight onto the vessel, as well as handling local carriage, discharge, import formalities and duties and onward carriage to the final destination. FAS only applies to ocean or inland waterway transport. It is popular with bulk cargo, such as oil or grain.

Seller pays all expenses until freight is on the vessel, then buyer takes over.

Seller’s Obligations

• Goods, commercial invoice and documentation.
• Export packaging and marking / Export licenses and customs formalities.
• Pre-carriage and delivery.
• Loading charges / Delivery at named port of destination.
• Proof of delivery.
• Cost of pre-shipment inspection.

Buyer’s Obligations

• Payment for goods as specified in sales contract.
• Risk starting with onboard delivery.
• Discharge and onward carriage.
• Import formalities and duties.
• Cost of pre-shipment inspection (for import clearance).