Lesson 8 / 11 · sea and inland waterway only
FAS Free Alongside Ship
The seller delivers when the goods are placed alongside the buyer's ship at the named port of shipment — on the quay or on a barge. The buyer pays for lifting them on board and everything after. Used for heavy or bulky cargo, never for containers.
Reviewed by: pending — expert review by TermVisa's editor (retired VP, international transport) in progress · Last updated
Scenario
A 180-tonne turbine module delivered alongside a heavy-lift ship in Houston (sea, break-bulk)
FAS Port of Houston (named berth) Incoterms® 2020
- Seller
- Power-equipment manufacturer, Houston area, United States
- Buyer
- Power-plant contractor, Dammam, Saudi Arabia
- Transport
- Sea — break-bulk heavy lift, Houston → Dammam
The seller, a power-equipment manufacturer near Houston, United States, sells a 180-tonne turbine module to the buyer, a power-plant contractor in Dammam, Saudi Arabia, under FAS Port of Houston Incoterms® 2020, naming the berth. Transport is by sea, break-bulk: the buyer charters a heavy-lift ship with its own cranes. The seller moves the module to the quay on a self-propelled trailer and sets it down within reach of the ship's cranes. The buyer lifts it on board, ships it to Dammam and clears it there.
Illustrative scenario: companies are generic, and real contracts, carriers and countries add their own conditions.
The journey, stage by stage
Top bar: who pays for each stage. Bottom bar: who bears the risk of loss or damage. The red line marks where risk passes.
- Seller
- Buyer
- Depends on contract / carrier or port practice
- Point where risk passes
⚠ Risk passes when the module is placed alongside the ship at the named berth — before the lift, which is the buyer's risk.
- Loading at the seller's premises — Seller: Seller loads the module on a heavy trailer
- Export clearance — Seller: US export filing by the seller
- Pre-carriage to the departure terminal — Seller: Heavy-haul move to the named berth
- Cargo placed alongside the ship (quay) — Seller: Module set down alongside, within reach of the ship's cranes
- Lifting the cargo on board — Buyer: Heavy lift on board with the ship's cranes
- Main carriage — Buyer: Sea freight Houston → Dammam (chartered)
- Arrival terminal: unloading and handling — Buyer: Discharge at Dammam
- Import clearance, duties and taxes — Buyer: Saudi import clearance, duties and taxes
- On-carriage to the named place — Buyer: Heavy haul to the plant site
Who does what in this scenario
| Party | What they arrange / do | Who pays (them / what they pay) | Risk they carry | Key documents |
|---|---|---|---|---|
| Seller / exporter | Delivers the module alongside on time, handles export formalities, sends proof of delivery alongside. | Everything up to and including placing it alongside, quay charges for that, export formalities. | Until placed alongside at the named berth. | Commercial invoice, packing list with weights and lifting points, dock or mate's receipt, proof of export. |
| Buyer / importer | Charters the ship, tells the seller the vessel name, berth and loading dates, then lifts, ships and clears. | Lifting, sea freight, insurance, arrival costs, duties and taxes, on-carriage. | From placement alongside — including the heavy lift. | Charter party, bill of lading, import declaration. |
| Origin freight forwarder | A project forwarder (seller's) organises the heavy-haul move and quay access. | Seller. | Its own errors. | Permits, quay booking. |
| Destination freight forwarder | The buyer's agent in Dammam coordinates discharge, clearance and the haul to site. | Buyer. | Its own errors. | Delivery order. |
| Ocean carrier (shipping line) | The heavy-lift owner carries the module under the buyer's charter; its cranes do the lift. | Buyer. | Per charter party and bill of lading. | Bill of lading. |
| Cargo insurer | No obligation. The seller insures to alongside; the buyer from alongside, including the lift. | Each for its own part. | Per policy. | Policies. |
| Customs broker (export) | Files the export declaration in the United States for the seller. Most countries require one; value thresholds, exceptions and export-control checks vary — ask the broker. | Seller. | Answers to its client for filing errors; the exporter stays responsible to customs. | Export declaration and release (proof of export). |
| Customs broker (import) | Classifies the goods, files the import declaration in Saudi Arabia for the buyer as importer, pays duties and import taxes on its account and obtains release. | Buyer. | The buyer remains responsible to customs as importer; the broker answers to it for its own errors. | Import declaration, duty and tax receipts, release. |
| Banks (letters of credit) | For documentary credits under FAS, the transport document is issued after loading — which the buyer controls. Agree which document the seller presents (e.g. a dock receipt). | As negotiated. | Documentary risk. | Documentary credit. |
| Terminals and ports | The port provides the berth and lay-down area; storage while waiting for a late ship is a classic dispute. | Seller up to alongside; costs caused by the buyer's late ship: buyer. | Its own handling and storage. | Quay receipt. |
✗ Common mistakes
- Using FAS for containers, which are handed over at a terminal, not alongside a ship.
- Vague port naming ('FAS US Gulf') with no berth.
- No agreement on storage costs if the buyer's ship is delayed.
- Buyer's insurance starting at loading on board, leaving the heavy lift uncovered.
? What to ask before you sign
- The terminal (Seller) At this berth, where exactly is 'alongside', and which quay charges are mine?
- The buyer (Seller) When will you confirm the vessel name, berth and loading window?
- Your cargo insurer (Buyer) Does my cover include the heavy lift from the quay?
- Your customs broker (Seller) Does this equipment need an export licence?
Self-check: 3 quick questions
No sign-up, nothing is saved or sent. Pick an answer to see the explanation.