Free Alongside Ship (. . . named port of shipment) (FAS)
(Incoterms© 2010, enter into force January 1, 2011)
One of the 11 Incoterms© 2010.
In Free Alongside Ship, the seller/exporter/manufacturer clears the goods for export and places them alongside the ship (on a dock or barge) at the “named port of shipment.”
When using the FAS term, it is advisable to clearly specify in the contract of sale, and in contracts of carriage, not only the named port of shipment, but also the precise loading point at or within the named port of shipment. This is particularly the case when the named port of shipment is large and options abound for delivery points.
With FAS, the seller has the option to deliver the goods alongside the ship, or to “procure goods already so delivered.” This is a reference to so-called “string sales” where a single shipment might be resold multiple times during transport, as is common in the commodity trade.
The FAS term is commonly used in the sale of bulk commodity cargo such as oil, grains, and ore.
If the shipment is containerized or to be containerized, common practice is to deliver the shipment to the carrier at a terminal and not alongside a ship. In such situations, the FCA term is recommended.
The named place in FAS is a port, and therefore the term is used only for ocean or inland waterway transport.
With FAS, the named port of shipment is domestic to the seller. Usual payment terms for FAS transactions are cash in advance and open account, but letters of credit are also used.
See Incoterms© 2010, World Trade Press Illustrated Guide to Incoterms© 2010 Appendix for details.