Freight Forwarding & Incoterms: Key Terms Explained in Detail

Free Alongside Ship (FAS) is an Incoterm used in ocean freight to define when responsibility shifts from the seller to the buyer. Under FAS, the seller delivers the goods to a designated spot alongside the vessel at the port of shipment. This could be a quay, barge, or loading area next to the ship. Once the goods are placed alongside, the buyer assumes responsibility for loading, ocean freight, insurance, and all further costs.

The seller is responsible for export packaging, inland transport to the port, export customs clearance, and ensuring the goods reach the correct loading area. After that point, the buyer takes over, arranging vessel loading and onward transport. This clear handover avoids confusion about who handles risks or expenses at different stages of the shipment. FAS works best when cargo can be easily positioned next to the vessel.

This Incoterm is commonly used for breakbulk, heavy-lift, or oversized cargo, where goods are moved piece by piece rather than in containers. It provides flexibility in handling large or non-standard items. However, it is less commonly used in container shipping, where cargo is typically delivered to a terminal rather than directly alongside a specific vessel. Other Incoterms may be better suited for containerized movements.

Overall, FAS offers a clean division of responsibilities at the port of shipment. It helps buyers manage the main carriage while allowing sellers to complete their obligations at a defined point. When applied correctly, it ensures smooth coordination, reduces disputes, and keeps port operations efficient.