A practical guide to FAS shipping — including seller and buyer responsibilities, export clearance, risk transfer, FAS vs FOB and FCA, bulk cargo, and shipping from China.
SEE FAS RESPONSIBILITIESUnder FAS (Free Alongside Ship), the seller delivers the goods when they are placed alongside the vessel nominated by the buyer at the named port of shipment.
The seller completes export clearance and bears the cost and risk of bringing the goods to that alongside-vessel delivery point. From there, the buyer bears the risk and arranges loading, main ocean carriage, import clearance and onward delivery.
The seller brings the goods to the named port and places them alongside the buyer-nominated vessel.
The seller handles export customs formalities before FAS delivery is completed.
The buyer arranges vessel space, loading, ocean freight, insurance if desired and destination-side logistics.
FAS keeps origin-side export delivery with the seller and puts vessel loading and main carriage under the buyer's control.
FAS delivery occurs before the goods are loaded on board. The cargo must be placed alongside the nominated vessel at the named port of shipment.
Seller brings the cargo to the agreed port area.
Goods are positioned at the quay, barge or other agreed alongside point.
Risk transfers from seller to buyer.
Buyer-side responsibility begins.
Risk transfers when the goods are placed alongside the buyer-nominated vessel at the named port of shipment.
This is the central difference from FOB, where delivery and risk transfer occur after the goods have been loaded on board the vessel.
| COST / TASK | SELLER | BUYER |
|---|---|---|
| Goods & export packaging | YES | — |
| Origin transport to named port | YES | — |
| Export customs clearance | YES | — |
| Delivery alongside nominated vessel | YES | — |
| Loading onto vessel | — | YES |
| Main ocean freight | — | YES |
| Cargo insurance | Not required by FAS | Optional / Buyer choice |
| Import customs clearance | — | YES |
| Import duties & taxes | — | YES |
Both are sea-only origin rules and both leave main ocean freight with the buyer. The difference is where delivery occurs.
Seller places the goods alongside the nominated vessel. Buyer is responsible for loading onto the vessel.
RISK TRANSFERALONGSIDE THE VESSELSeller is responsible for getting the goods on board the nominated vessel.
RISK TRANSFERWHEN GOODS ARE ON BOARDFAS assumes a real delivery point alongside a vessel. Containerized cargo is usually handed to a terminal or carrier before the ship is alongside the cargo.
Best matched to cargo where the seller can physically deliver next to the nominated vessel.
SEA / INLAND WATERWAY ONLYOften better suited to containers and cargo handed over at terminals before vessel loading.
ANY MODE / MULTIMODALFAS and CFR are both sea / inland-waterway rules, but they allocate main freight very differently.
Seller's cost obligation ends with delivery alongside the vessel.
Seller pays ocean carriage to the named destination port, although risk still transfers at origin.
FAS is most logical when the physical delivery process actually involves positioning goods alongside a nominated vessel before loading.
Commodities or cargo loaded directly from port-side facilities.
Large individual pieces not packed in standard containers.
Machinery or oversized units requiring planned vessel-side handling.
Where the agreed port operation uses barges or other alongside positioning.
FAS can work for certain China-origin sea shipments when the supplier is able to place cargo alongside a buyer-nominated vessel and the buyer wants to control loading and ocean freight.
Buyer provides the vessel, port and shipping instructions.
Goods and export packaging are prepared.
Seller completes China export customs formalities.
Seller positions the goods alongside the vessel.
Buyer arranges loading and ocean carriage.
Buyer handles destination customs and onward movement.
Before agreeing to FAS, confirm that the supplier can access the required port area and physically complete the alongside-vessel delivery.
Can the supplier or its logistics provider enter the required port area?
Is the nominated vessel and delivery window clearly communicated?
Does the cargo need cranes, barges, special lifting or port equipment?
Do local port rules allow the planned FAS handover structure?
The chosen Incoterm should match the actual physical handover rather than using FAS simply because the shipment travels by sea.
FAS uses a named port of shipment, not a destination port. State the exact port and, where possible, the specific terminal, quay or delivery point.
The buyer nominates the vessel and gives the supplier shipping instructions. The seller completes export clearance and places the cargo alongside that vessel at the agreed Shanghai port location.
Risk transfers to the buyer at that point. The buyer then arranges vessel loading, ocean freight, insurance if desired, U.S. import clearance and final delivery.
SELLER DELIVERS ALONGSIDE — BUYER TAKES OVER BEFORE LOADING.Exact documentation depends on cargo, vessel, port and regulatory requirements.
FAS means Free Alongside Ship. The seller delivers the goods alongside the buyer-nominated vessel at the named port of shipment.
Risk transfers when the goods are placed alongside the nominated vessel at the named port of shipment.
The buyer is responsible for arranging and paying for loading from the alongside delivery point onto the vessel.
The buyer contracts and pays the main ocean carriage.
The seller is responsible for export clearance under FAS.
No. FAS is only for sea and inland waterway transport.
Under FAS, delivery occurs alongside the vessel before loading. Under FOB, the seller delivers the goods on board the vessel.
Often not. If containerized goods are handed to a terminal or carrier before they are physically alongside the vessel, FCA may better match the actual delivery process.
Send us the supplier location, cargo details, named port, vessel arrangement and final destination. We can review whether FAS, FOB, FCA or another structure better matches the shipment.
GET A FREE QUOTEThis page is a general educational summary and is not the official ICC Incoterms® 2020 text or legal, insurance, tax or customs advice. The named port, vessel nomination, port procedures, sales contract and actual handover process matter. Refer to the official ICC rules when incorporating FAS into a contract.
ChengYu Ship can help compare FAS with FOB, FCA and other ocean freight structures for your China-origin shipment.
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