01Obligations under FAS
Seller: Export clearance, delivery alongside ship at port of shipment.
Buyer: Loading, main carriage, import clearance, insurance.
The precise split of the 10 obligation pairs (A1–A10 / B1–B10) is binding under the ICC Incoterms 2020 rules.
02Risk and cost transfer
Risk transfer: When goods are placed alongside the ship.
Cost transfer: Seller up to alongside ship, buyer thereafter.
For several Incoterms, the risk and cost points do not coincide — this is the biggest source of misunderstanding in international trade. Cargo insurance should always be aligned with the risk transfer point, not the cost transfer point.
03When to use FAS
Used for bulk / break-bulk / project cargo (steel, grain, heavy lift) where cranes handle loading at the terminal. Not suitable for containers — use FCA instead.
Before choosing, verify: Can both parties operationally handle customs, carriage and insurance in the respective country? Are there tax implications (e.g. VAT under DDP)? Which documents (commercial invoice, certificate of origin, B/L, CMR, AWB) are required?
04Common pitfalls
1) Mode mismatch: FAS is only for sea / inland waterway — do not use for containers in multimodal transport.
2) On-board notation: For sea Incoterms, a correct on-board notation on the B/L is critical for letter-of-credit settlement.
3) Insurance cover: Explicitly agree ICC A / B / C and the sum insured.
Preguntas frecuentes
What does FAS mean in practice?
Sea / inland waterway only: seller places goods alongside the vessel. Applicable to sea and inland waterway only. Risk transfer: When goods are placed alongside the ship.
Who pays cargo insurance under FAS?
No mandatory insurance. The buyer bears the risk from the transfer point onwards and should insure accordingly.
Is FAS suitable for containers?
Not ideal. For containers, the ICC recommends the multimodal terms FCA (instead of FOB), CPT (instead of CFR) or CIP (instead of CIF).