Incoterms rule
FAS — Free Alongside Ship
FAS completes delivery when the goods are placed alongside the vessel at the port of shipment. It is a rule written for cargo that is loaded from the quay, and it is a poor fit for anything that is not.
A rule about a physical position
FAS is defined by where the goods end up rather than by who does what: alongside the named vessel, at the named port, within reach of its loading gear. Delivery completes at that point and risk passes there.
It is one of the four maritime rules, and it is the earliest of them in the loading sequence. Everything after that position — loading, stowage, the sea carriage, discharge — belongs to the buyer.
Suited to cargo that is loaded from the quay
The rule makes sense for bulk commodities, breakbulk, and heavy or project pieces that are lifted aboard from a quay by ship's gear or a shore crane. In those operations there is a real, observable moment at which the goods are alongside, and both parties can point to it.
It is a poor fit for containerised cargo, which is delivered into a terminal system days before a vessel is nominated and is never placed alongside anything by the seller. Using FAS for containers creates a delivery point that does not correspond to an event, which is the same defect that makes FOB awkward for containers.
'Alongside' needs defining, because ports differ
In practice a port may require goods to be delivered to a designated area, a shed, or a lighter rather than physically placed on the quay next to the hull. What counts as alongside is affected by port rules, by the terminal's working practices and by whether the vessel is at a berth at all when the goods arrive.
Where a contract turns on that position, the parties are better served by describing it in words than by relying on the term. The rule sets a structure; the port decides the geography.
Export clearance sits with the seller
Under FAS the seller handles export formalities in the country of shipment. That is the pattern across the F-rules and it is usually the sensible allocation, since the seller is the party present in that jurisdiction.
Everything on the import side — the entry, duties, taxes and onward movement — is the buyer's. Requirements vary by commodity and jurisdiction and they change; they should be confirmed with the relevant customs authority or an appointed representative for the specific shipment.
In practice
What this means for a shipment.
- Use it for bulk, breakbulk and project cargo loaded from a quay, not for containers
- Define in the contract what 'alongside' means at the specific port, since practice varies
- Establish who bears the cost if the vessel is delayed and the goods have to be stored or moved
- Confirm that the buyer has nominated a vessel and that the seller knows which one and when
- Remember that the seller handles export clearance and the buyer everything on arrival
Written independently for shippers, and not a substitute for the rule. The Incoterms rules are copyrighted by the International Chamber of Commerce and revised from time to time; because what counts as 'alongside' is settled by port practice rather than by the rule, the current ICC text and the port's own terms both matter.
Use the reference
Apply the definition to the actual contract and shipment.
A reference explains the role of a rule or document. The applicable edition, terms and requirements still need to be confirmed for the case.
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