CFR vs FAS: who pays what

CFR is Cost and Freight. FAS is Free Alongside Ship. Incoterms 2020.

The difference that matters

Full cost split

Cost blockCFRFAS
Export clearanceSellerSeller
Carriage to port / terminalSellerSeller
Loading onto main carriageSellerBuyer
Main carriage (freight)SellerBuyer
InsuranceNeither obligedNeither obliged
Unloading at destinationBuyerBuyer
Import clearanceBuyerBuyer
Duties and import taxesBuyerBuyer
Risk passesWhen the goods are loaded on board at origin — even though the seller keeps paying to the destination.When the goods are alongside the ship — quay or barge — not yet on board.
Transport modeSea / inland waterwaySea / inland waterway

What people get wrong

CFR

Cost and risk split apart here. The seller pays freight for a voyage during which the buyer already carries the risk, and nobody is obliged to insure it.

FAS

Only sensible for bulk or break-bulk. For containers the goods leave the seller long before the quay, so FCA fits better.

Questions

What is the main difference between CFR and FAS?
They split 2 cost blocks differently. loading onto main carriage falls to the seller under CFR and the buyer under FAS; main carriage (freight) falls to the seller under CFR and the buyer under FAS.
Where does risk pass under CFR?
When the goods are loaded on board at origin — even though the seller keeps paying to the destination.
Where does risk pass under FAS?
When the goods are alongside the ship — quay or barge — not yet on board.
Can CFR and FAS both be used for container shipments?
Both are written for sea and inland waterway transport. For containers, the goods usually leave the seller's control at a terminal rather than at the ship, so a rule for any mode of transport normally fits better.

Whichever term you agree, the paperwork has to say so

The Incoterm and named place belong on the commercial invoice, the packing list and the shipper's instructions — spelled the same way on each. ovrseas generates the set from one entry so they cannot disagree with each other.

Commercial invoice template

Compare other pairs

CFR vs CIFCFR vs CIPCFR vs CPTCFR vs DAPCFR vs DDPCFR vs DPUCFR vs EXWCFR vs FCA

Incoterms® is a registered trademark of the International Chamber of Commerce. This page is an independent summary of how costs and risk are allocated and is not affiliated with or endorsed by ICC. For contract drafting, use the official Incoterms® 2020 rules published by ICC.