FAS vs FOB (Incoterms 2020)
Under FAS the seller delivers alongside the ship; under FOB it delivers on board. With FOB the seller also bears the cost and risk of loading onto the vessel.
Side by side
| FAS · Free Alongside Ship | FOB · Free On Board | |
|---|---|---|
| Transport | Sea and inland waterway | Sea and inland waterway |
| Delivery and risk pass to the buyer Different | Alongside the ship at the port of shipment | On board the ship at the port of shipment |
| Main freight paid by | Buyer | Buyer |
| Insurance | Not required | Not required |
| Export clearance | Seller | Seller |
| Import clearance and duties | Buyer | Buyer |
| Unloading at destination | Buyer | Buyer |
Where risk and costs pass from the seller to the buyer
SellerBuyer
Origin → Main carriage → Destination. Simplified diagram: the exact point is the named place written after the rule. The costs line shows who pays the main carriage and, under DDP, the import duties and taxes.
Seller's obligations compared (A1–A10)
| FAS | FOB | |
|---|---|---|
| A1/B1 General obligations | Provide the goods and the commercial invoice as the contract requires, plus any other proof of conformity it asks for. Documents may be paper or electronic if agreed or customary. | Provide the goods and the commercial invoice as the contract requires, plus any other proof of conformity it asks for. Documents may be paper or electronic if agreed or customary. |
| A2/B2 Delivery and taking delivery | Deliver by placing the goods alongside the ship nominated by the buyer, at the loading point indicated by the buyer at the named port of shipment, or procure goods so delivered; if no point is given, the seller may choose one. | Deliver by placing the goods on board the ship nominated by the buyer, at the loading point indicated by the buyer at the named port of shipment, or procure goods so delivered; if no point is given, the seller may choose one. |
| A3/B3 Transfer of risks | Bears all risk until the goods are alongside the ship. | Bears all risk until the goods are on board the ship. |
| A6/B6 Delivery or transport document | Provide, at its cost, the usual proof of delivery, and help the buyer obtain a transport document. | Provide, at its cost, the usual proof that the goods are on board, and help the buyer obtain a transport document. |
| A9/B9 Allocation of costs | Pay all costs until the goods are alongside the ship, the proof of delivery and export clearance. | Pay all costs until the goods are on board, including loading, the proof of delivery and export clearance. |
When to use each rule
FAS
FAS is for sea and inland waterway transport of bulk, break-bulk or heavy cargo that is loaded directly from the quay, such as grain, logs or machinery. It is not meant for containers.
FOB
FOB is meant for sea and inland waterway transport where goods are loaded directly on board, such as bulk and break-bulk cargo. It is widely used for containers too, but the ICC recommends FCA for container shipments.
Compare other rules
A plain-language summary of Incoterms® 2020 for everyday use. The full rules are published by the International Chamber of Commerce (ICC), and your contract wording decides. Incoterms® is a registered trademark of the ICC.
Guides on this topic
Common questions
Can FAS be used for containers?
It is not recommended. Containers are handed over at a terminal before loading, so FCA fits better. FAS is for cargo delivered alongside the ship.
Does FOB include freight?
No. Under FOB the buyer books and pays the sea freight. The seller's price covers the goods delivered on board at the port of shipment.
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