FAS is the Incoterm where the seller delivers the cargo alongside the vessel at the named port of shipment. Alongside means on the dock at the loading berth, ready for the ship’s cranes or the terminal cranes to lift it on board. From that moment risk and cost transfer to the buyer. The single difference from FOB is the moment of transfer: under FOB the cargo crosses the ship’s rail; under FAS the cargo sits on the dock waiting for it.
When FAS is the right choice
FAS is rare in containerised chemical trade and standard in two narrow contexts:
- Bulk break-bulk cargo loaded by terminal cranes. Drummed chemicals shipped as palletised break-bulk, where the cargo is staged dockside and lifted aboard by terminal equipment. The buyer or charterer pays the loading lift.
- ISO-tank and tanker shipments where the loading terminal handles the transfer. Liquid chemicals pumped from shore tanks into a vessel’s tanks. Loading is the buyer’s account because the buyer controls the vessel charter.
For standard FCL container shipments of chemicals, FAS is almost never the right Incoterm. Use FOB, where the seller pays for loading on board.
What FAS Shanghai actually covers and what it doesn’t
Under FAS Shanghai, the Chinese seller is responsible for:
- Producing the goods to specification
- Export packaging including UN-certified packaging for DG cargo
- Inland transport from factory to the named Chinese port
- Chinese export customs clearance
- Delivering the cargo to the dock alongside the named vessel within the agreed loading window
- Producing the bill of lading, commercial invoice, packing list, COA, and MSDS
The seller is not responsible for:
- Loading the cargo on board the vessel (the buyer or charterer pays the lift)
- Sea freight (the buyer arranges and pays)
- Marine insurance (the buyer arranges and pays)
- Destination port charges, customs, duties, and inland transport
The loading-cost gap
The most common FAS misunderstanding is the loading cost. A buyer expecting FOB economics writes “FAS Shanghai” on the purchase order and assumes the cargo arrives on board. Under FAS the cargo arrives on the dock. Loading from dock to vessel, called the lift cost, is the buyer’s account. For container cargo this can run USD 80 to 200 per container at major Chinese ports; for break-bulk drummed cargo it is significantly higher and quoted per tonne. If the buyer has not pre-arranged this with the loading terminal, the cargo sits on the dock and accrues storage charges.
Always confirm with the loading terminal who pays the lift before the vessel arrives. If FAS is the agreed Incoterm and the buyer is paying the lift, the buyer’s freight forwarder should book the lift slot in advance.
When FAS is the wrong choice
FAS is wrong for almost all containerised chemical shipments. The container-loading economics under FOB are baked into the carrier’s tariff. Splitting them out under FAS introduces a separate invoice line, a separate booking, and a separate failure point with no cost saving. Stay with FOB unless the cargo is genuinely break-bulk or tanker-mode.
Real-world FAS scenarios in chemical trade
FAS appears in three practical scenarios for chemical sourcing from China. First, bulk-tanker cargoes of caustic soda solution, sulfuric acid, or methanol where the loading process involves shore-side pumps and dedicated terminal infrastructure that the seller cannot reasonably control once the cargo is at the dock. Second, break-bulk shipments of palletised drums or big-bag fertiliser where the loading is handled by terminal stevedores rather than by the factory’s own crew. Third, project cargoes (large industrial equipment with chemical-process applications) where the cargo is too large for standard containerised handling.
For each of these scenarios, the buyer takes on the loading risk and cost in exchange for a lower per-MT price than the equivalent FOB quote. The price spread between FAS and FOB at a typical Chinese port is USD 8 to USD 25 per MT for bulk product, mostly reflecting the labour and equipment cost the seller would otherwise incorporate.
Documentation specifics under FAS
The bill of lading under FAS is issued after the cargo is alongside the vessel; the carrier’s “received for shipment” date marks the risk-transfer event from buyer’s chartered tugs or the seller’s handover at the quay to the carrier’s bills. Marine insurance must be in force from the moment the cargo is alongside, not from the moment of loading on board. A buyer running FAS without confirming insurance coverage from the alongside-quay moment leaves a coverage gap during the loading window itself.
Related Incoterms
FOB: the standard for containerised export. Seller pays loading on board. CFR: seller pays freight to destination port. FCA: seller delivers to a named carrier in the country of origin (more flexible than FAS for multimodal cargo).