FOB vs FAS: Key Differences in Shipping Terms Every Trader Must Know
Publish Time: 2025-04-30 Origin: Site
FOB vs FAS: The Ultimate Comparison
1. Free On Board (FOB)
Definition:
Seller delivers goods onboard the vessel at named port. Risk transfers when cargo crosses ship’s rail.
? When to Use:
Buyer controls shipping/logistics
Common for US/Europe imports from Asia
Cost Breakdown:
| Party | Responsibilities |
|---|---|
| Seller | Export clearance, loading costs, pre-shipment risks |
| Buyer | Main carriage, insurance, import clearance |
? Key Features:
Risk transfer: At ship’s rail (e.g., Ningbo port)
Best for: Bulk commodities, factory-direct shipments
Common Mistakes:
Assuming FOB includes insurance (it doesn’t)
Using for air freight (FCA is correct)
2. Free Alongside Ship (FAS)
? Definition:
Seller places goods beside vessel (e.g., on dock/barge). Risk transfers at ship’s side.
? When to Use:
Buyer handles complex loading (e.g., heavy machinery)
Preferred in raw material trades
Cost Breakdown:
| Party | Responsibilities |
|---|---|
| Seller | Export clearance, delivery to quay |
| Buyer | Loading onto vessel, main carriage |
? Key Features:
Risk transfer: At port-side (e.g., Rotterdam docks)
Port variability: Costs differ by port infrastructure
No obligation: Seller doesn’t arrange vessel
Common Mistakes:
Confusing with FCA (seller delivers to carrier)
Underestimating dock storage fees
Side-by-Side Summary
| Aspect | FOB | FAS |
|---|---|---|
| Risk Transfer | Onboard vessel | Shipside |
| Export Clearance | Seller | Seller |
| Loading Costs | Seller | Buyer |
| Best For | General cargo | Oversized/heavy loads |
Pro Tip:
"Choose FOB for turnkey shipments, FAS if you need control over loading. Always specify the port (e.g., FOB Shanghai) to avoid disputes."
— Logistics Director, DHL Global Forwarding