Incoterms & trade contracts FAS

Free Alongside Ship

Used only for sea and inland-waterway transport. The seller places export-cleared goods alongside the vessel nominated by the buyer (on the quay or a barge); risk passes there, and loading onto the ship and freight are for the buyer. Common for bulk and project cargo such as grain, timber, scrap and heavy lifts; for containerised goods FCA should be used instead.

Related terms

Free On Board FOB

One of the most common terms in raw material trade, used only for sea and inland-waterway transport. The seller loads export-cleared goods onto the vessel nominated by the buyer at the port of shipment, and risk passes once the goods are on board. The buyer arranges freight and insurance; for bulk cargo the loading rate, laytime and demurrage must be agreed separately. For containerised goods FCA is the more accurate choice.

Incoterms 2020

The eleven standard delivery terms published by the International Chamber of Commerce (ICC) that define where the seller delivers, when risk passes to the buyer and who pays for freight, insurance and customs formalities. Incoterms do not set the price, the payment method or the transfer of ownership; those must be written separately in the contract. A rule should always be quoted with a named place and the version, e.g. “FOB Mersin Port, Incoterms 2020”.

Bulk cargo (dry and liquid bulk)

Cargo loaded directly into a ship’s hold or tanks without packaging: grain, coal, iron ore, scrap, fertiliser and cement are dry bulk; crude oil, fuels, vegetable oils and chemicals are liquid bulk. Ship sizes are classed as Handysize (15–35k dwt), Supramax/Ultramax (50–64k), Panamax/Kamsarmax (65–82k) and Capesize (over 100k dwt). Quantity is determined by draft survey or weighbridge and quality by sampling at loading and discharge.

Explained in the trade handbook

Trade handbook