FAS vs FOB: who pays what

FAS is Free Alongside Ship. FOB is Free On Board. Incoterms 2020.

The difference that matters

Full cost split

Cost blockFASFOB
Export clearanceSellerSeller
Carriage to port / terminalSellerSeller
Loading onto main carriageBuyerSeller
Main carriage (freight)BuyerBuyer
InsuranceNeither obligedNeither obliged
Unloading at destinationBuyerBuyer
Import clearanceBuyerBuyer
Duties and import taxesBuyerBuyer
Risk passesWhen the goods are alongside the ship — quay or barge — not yet on board.When the goods are loaded on board the ship.
Transport modeSea / inland waterwaySea / inland waterway

What people get wrong

FAS

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

FOB

Routinely misused for containers. A container is handed over at a terminal days before loading, so the seller keeps risk they think they have shed.

Questions

What is the main difference between FAS and FOB?
They split 1 cost block differently. loading onto main carriage falls to the buyer under FAS and the seller under FOB.
Where does risk pass under FAS?
When the goods are alongside the ship — quay or barge — not yet on board.
Where does risk pass under FOB?
When the goods are loaded on board the ship.
Can FAS and FOB 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 FASCFR vs FOBCIF vs FASCIF vs FOBCIP vs FASCIP vs FOBCPT vs FASCPT vs FOB

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.