In international trade, choosing the right Incoterms rule is essential not only for cost optimization but also for minimizing risks during the shipping process. In this article, we will explore FAS (Free Alongside Ship) — a specialized Incoterms rule used exclusively for sea and inland waterway transport.

1. What is FAS Incoterms 2020?

FAS (Free Alongside Ship) means:

The seller fulfills their delivery obligation when the goods are placed alongside the vessel nominated by the buyer at the named port of shipment.

The goods may be placed:

• On the quay (port terminal)
• On a barge

👉 Key point:
The risk of loss or damage transfers from the seller to the buyer once the goods are placed alongside the vessel.

2. Seller’s Responsibilities

Under FAS, the seller is responsible for:

• Delivering the goods alongside the vessel at the agreed port and time
• Bearing all costs and risks until the goods are safely placed alongside the vessel
• Handling export customs clearance, including:
  • Export licenses (if required)
  • Export duties and taxes
• Providing necessary documents to the buyer

👉 Note: The seller is not responsible for:

• Import customs clearance
• Transit procedures through third countries

3. Buyer’s Responsibilities

The buyer plays a key role in the transportation process:

• Arranging the main carriage (sea freight)
• Nominating the vessel and informing the seller of:
  • Vessel name
  • Loading location
  • Delivery schedule
• Paying for:
  • Loading the goods onto the vessel
  • International freight
  • Unloading at destination
  • Local charges at the port of origin
• Bearing all risks from the moment the goods are placed alongside the vessel
• Handling import customs clearance and paying duties/taxes

4. When Should You Use FAS?

FAS is most suitable for:

✔ Bulk cargo

• Grain
• Coal
• Ores

✔ Non-containerized goods

• Liquid chemicals
• Break bulk cargo

✔ Oversized / heavy-lift cargo

• Industrial machinery
• Large equipment

5. Important Notes When Using FAS

❌ Not suitable for containerized cargo

In practice, containerized goods are:

• Delivered to a terminal (container yard) before being loaded onto the vessel

👉 Therefore, FCA (Free Carrier) is usually a more appropriate and safer choice than FAS.

⚠ Barge transport scenario

When the mother vessel cannot access the port:

• Goods are transported via barge to the vessel
• The risk transfer point remains:

When the goods are placed alongside the mother vessel, even if still on the barge

6. Risks of Misusing FAS

Incorrect application of FAS can lead to:

• Disputes over loading costs
• Misunderstanding of risk transfer point
• Unexpected additional charges
• Delays in shipment

7. Conclusion

FAS is a useful but highly specialized Incoterms rule. When applied correctly, it helps businesses:

• Control logistics costs
• Clearly define responsibilities
• Reduce risks in cargo handling

Songwin Logistics – Your Trusted Partner in International Trade

Choosing the right Incoterms requires not only theoretical knowledge but also practical experience.

Songwin International Logistics Vietnam provides:

• Incoterms consultation
• Customs clearance services
• End-to-end international logistics solutions

📩 Contact us today for a free consultation:

SONGWIN INTERNATIONAL LOGISTICS VIETNAM CO., LTD
📍 Address: 344 Nguyen Trong Tuyen Street, Tan Son Hoa Ward, Ho Chi Minh City
📞 Hotline: 083.681.3969 – 0373.262.105
📧 Email: Sales2@songwinlog.com

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