How to Compare FAS Quotations From Bangladeshi Suppliers

Three FAS quotations for one shipment can show three different headline prices, and the lowest can still be the most expensive shipment. That happens because a FAS price stops at the side of the vessel, while the costs that follow it do not stop there. FAS means Free Alongside Ship. Under Incoterms 2020, the seller delivers by placing the goods alongside the vessel nominated by the buyer at the named port of shipment, and risk transfers to the buyer at that point.¹

FAS applies only to sea or inland waterway transport.¹ The seller carries the goods to the port and completes export formalities.¹ The buyer contracts the carrier, pays freight and loading costs, and handles import formalities and any transit customs.¹ FAS does not require either party to insure the goods, although the buyer may arrange cover separately.²

The method has four passes. Fix one specification and send it to every supplier in identical words. Normalize the alongside point, rewriting every quote to the same port, quay or barge point, vessel timing, and loading arrangement. Add the same onward costs from each alongside point to one warehouse. Rank by landed cost per unit. Landed cost is the total expense of a product after it has arrived at its final destination, including product cost, shipping, duties, taxes, insurance, handling, and other charges.³ Every figure below is an example figure, and every duty line must be replaced with the amount from the schedule for the confirmed code, confirmed with a broker.

Why this matters for buyers and sellers

For the buyer, the headline hides the two lines that most often decide the ranking: the loading leg from alongside onto the vessel, and the onward leg from that port to the warehouse. Both sit with the buyer, and both change with the port and the alongside point. A longer sea leg or special lifting equipment can turn a low FAS price into a high landed cost. The buyer also takes risk from the alongside point, before loading, so the vessel name, delivery point, and delivery window deserve the same attention as the price.

For the seller, the FAS price ends at the quay, so anything changing the cost of reaching that quay moves the quote. A seller farther from the port carries a longer inland leg inside its FAS price; a nearer seller does not. That is a cost difference, not a quality difference. This comparison turns on one question: from which alongside point, at which port, does each quote start the buyer-paid leg. Two quotes can name the same port yet start from different points, quay or barge; two can name different ports for the same product, with different sea legs. Normalizing the alongside point removes both distortions before ranking.

Step-by-step: how it works

Work through the seven steps with one specification sheet in front of you, and do not rank any quote until it has passed through all four passes.

1. Fix one specification. Send the same product, size, colour, quantity, packing, marking, crate requirement, and inspection requirement to every supplier in identical words. A different specification is not comparable.

2. Write the alongside point in full. Record the named port, quay or barge point, vessel name once nominated, and delivery period. The buyer must notify the seller in time of the vessel name and delivery place and point, and late notice can shift risk and costs to the buyer.¹ A quote naming only a port, with no point or window, goes back before ranking.

3. Split each FAS price. Ask what it includes: goods, packaging and marking, transport to the port, unloading at the quay, and export clearance.² If any line sits outside one price and inside another's, rewrite both onto the same lines.

4. Price the loading leg separately. Get a forwarder or port figure for loading from alongside onto the vessel at each point, for the actual cargo form. Loading is a buyer cost under FAS, not a seller line.¹ Never assume one figure fits every point.

5. Add the same onward costs. From each alongside point, add main carriage, insurance if arranged, destination handling, duty and taxes from the schedule for the confirmed code, broker fees, and warehouse delivery, all to the same warehouse.³ Use one destination, one currency, and one quantity for every quote.

6. Rank by landed cost per unit, then test the ranking. Divide each total by the same quantity, then change one variable at a time: a later vessel, a different alongside point, or a higher loading figure. A ranking that flips on a small change is a sign to confirm that line first.

7. Confirm validity, timing, and payment in writing. Record price expiry, ready date, nomination deadline, payment method and timing, and who bears bank charges. A ranking built on an expired price is not a ranking.

Costs, timelines and documents

Cost lines in a FAS comparison

Build the total in this order: FAS price, loading, main carriage, insurance if arranged, destination handling, duty and taxes from the schedule for the confirmed code, broker fees, and warehouse delivery. The FAS price covers the goods, packaging and marking, transport to the port, unloading at the quay, and export clearance.² Everything after the alongside point is a buyer line, including loading.¹

The table below uses example figures only. Replace every onward line with a forwarder or broker figure, and replace duty with the amount from the schedule for your confirmed code, confirmed with a broker. Do not use any example amount as a rate or for another product.

| Example figures, 720 crates of ceramic tableware | Quote 1 | Quote 2 | Quote 3 | | FAS price, example figure | $9,600 | $9,300 | $9,750 | | Alongside point, example figure | Chattogram quay | Mongla quay | Chattogram, barge alongside | | Loading onto the vessel, example figure | $420 | $580 | $350 | | Main carriage, example figure | $1,900 | $2,300 | $1,900 | | Insurance, example figure | $180 | $180 | $180 | | Destination handling, example figure | $300 | $300 | $300 | | Duty and taxes, example schedule amount | $610 | $590 | $625 | | Broker fees, example figure | $240 | $240 | $240 | | Total landed cost, example figures | $13,250 | $13,490 | $13,345 | | Landed cost per crate, example figures | $18.40 | $18.74 | $18.53 |

Quote 2 has the lowest FAS price and the highest landed cost: its loading leg and longer sea leg outweigh the headline saving. Quote 1 wins per crate despite a middle FAS price. Quote 3 shows the alongside point matters inside one port: a barge point changes loading even when port and sea leg stay the same. A quote hiding any of those three lines cannot be ranked.

Timelines to confirm separately

Ask for separate dates, not one delivery promise: price expiry, production finish, readiness, nomination deadline, alongside window, loading window, and expected warehouse arrival. The buyer must give the vessel name and delivery point in time, and failure to do so can shift risk and costs to the buyer.¹ A late vessel or late nomination leaves goods waiting at the quay while the loading window and onward booking move. Record who bears waiting and storage costs, in writing, before ranking.

Documents to confirm at quotation stage

Ask each supplier which papers it will supply and which you or your forwarder must obtain. Confirm the commercial invoice, packing list, product code for the destination schedule, proof that the goods were placed alongside the vessel, and the export clearance papers the seller completes under FAS.¹ The buyer or the buyer's carrier obtains the transport document for the onward leg, since the seller does not contract the carrier under FAS.¹ A quotation leaving the proof of alongside delivery unnamed should not be ranked yet: that proof marks the moment risk passes.

Bangladesh-specific rules and tips

Bangladesh offers more than one port of shipment, and that choice is a comparison variable, not a detail. A quote alongside at Chattogram and one at Mongla start their buyer-paid legs from different places, with different sea legs to the same destination. Price both sea legs from a forwarder on the same basis, to the same warehouse; do not let a shorter inland leg inside one FAS price disguise a longer sea leg after it.

Do not add inland transport to the buyer side of a FAS comparison. Transport to the port sits inside the FAS price, in the seller's lines.² Adding it again double-counts it. If a quote separates inland transport, record whether it sits inside or outside the stated FAS price, and rewrite every quote the same way.

Check the cargo form against the rule before you compare. FAS suits goods delivered directly alongside the vessel, such as bulk and break-bulk cargo, not containerized cargo, which is normally handed over at a terminal.² For containerized goods, the FCA rule fits the handover better.¹ Do not force containerized crates into a FAS comparison; the alongside point will not match the real handover.

For background on all eleven rules, see the Incoterms for shipments from Bangladesh guide. If your supplier will instead load the goods and arrange carriage and insurance to the destination port, see the CIF cost insurance freight guide, and compare that quote on CIF lines. When the wording is settled, the FAS contract clause guide covers the alongside delivery wording.

Mistakes and red flags

Ranking on the FAS price alone. The headline excludes loading, carriage, insurance, destination handling, duty, and broker fees. Rank only on landed cost per unit, from the same lines for every quote.

Comparing quotes from different alongside points as if they were the same. A quay point and a barge point in one port, or two different ports, produce different loading and sea legs. Normalize the alongside point first, or the ranking measures the port, not the supplier.

Treating loading as a seller cost. Under FAS, the buyer covers loading costs at the port.¹ A quote that folds loading into the seller's price, or leaves it out, must be rewritten onto buyer lines before ranking.

Using FAS for containerized cargo. Containers handed over at a terminal are not placed alongside the vessel in the sense FAS requires.² Use the rule that matches the real handover.

Leaving the vessel nomination vague. The buyer must notify the seller in time of the vessel name and delivery place and point.¹ A quote with no vessel, point, or window leaves the risk transfer unclear and loading unpriced.

Accepting a duty figure without a code check. Every duty line here is an example schedule amount. Replace it with the amount from the schedule for your confirmed code, confirmed with a broker.

Treating a profile or a badge as a capacity check. A profile is a starting point for enquiries. It does not test whether a supplier can place cargo alongside a named vessel on a stated date, and a badge is not a guarantee of capacity or delivery..

Checklist

• One specification sent to every supplier in identical words, including crate form, packing, marking, and inspection.

• Named port, alongside point, vessel name or nomination deadline, and delivery period recorded for every quote.

• FAS price split into goods, packaging and marking, transport to the port, quay unloading, and export clearance.

• Loading leg priced separately for each alongside point, with lifting and any barge transfer stated.

• Same onward lines for every quote, in one currency, to one warehouse, for one quantity: main carriage, insurance if arranged, destination handling, duty from the schedule for the confirmed code, broker fees, warehouse delivery.

• Validity, ready date, nomination deadline, payment terms, and bank charges confirmed in writing.

• Documents confirmed: invoice, packing list, product code, proof of alongside delivery, export papers, transport document holder, and any certificate of origin.

• Cargo form checked: FAS only where goods are delivered directly alongside the vessel, not for containerized terminal handovers.

How Exportain helps

Exportain lets buyers post one request for quotation that carries the same specification to more than one supplier. State the product, quantity, crate form, packing, and marking once, and ask every supplier for the same lines: named port in full, alongside point, split FAS price, loading arrangement, validity, ready date, and payment terms. When replies arrive with different ports or alongside points, the comparison sheet here rewrites them onto common lines before ranking. Post a free RFQ on Exportain at https://exportain.com/rfqs, and state the FAS port and alongside point in the request so replies arrive comparable.

FAQs

What should I know first about FAS?

FAS means Free Alongside Ship, and it applies only to sea or inland waterway transport.¹ The seller delivers by placing the goods alongside the vessel nominated by the buyer at the named port of shipment, completes export formalities, and transfers risk at that point.¹ The buyer contracts the carrier, pays freight and loading costs, and handles import formalities.¹ No party is required to insure the goods under FAS, although the buyer may arrange cover separately.² Know the alongside point before comparing prices: everything the buyer pays starts there.

What are the typical costs and timelines?

No typical costs or timelines hold for every FAS order, because the port, alongside point, cargo form, route, and destination duty schedule all change the total. The structure is stable: FAS price, loading, main carriage, insurance if arranged, destination handling, duty and taxes from the schedule for the confirmed code, broker fees, and warehouse delivery, giving landed cost per unit.³ For timelines, ask for separate dates for price expiry, readiness, nomination, alongside and loading windows, and arrival, not one promise.

Which documents are needed?

Confirm the commercial invoice, packing list, product code for the destination schedule, proof that the goods were placed alongside the vessel, and the export clearance papers the seller completes.¹ The buyer or the buyer's carrier holds the transport document for the onward leg, since the seller does not contract the carrier under FAS.¹ Confirm in writing who supplies each paper.

What are the most common mistakes?

Ranking on the FAS price alone, comparing quotes from different alongside points without normalizing them, treating loading as a seller cost, using FAS for containerized cargo, leaving the vessel nomination vague, and accepting a duty figure without a code check. Each mistake changes the landed cost per unit without changing the product, so the comparison sheet, alongside point, and code check come before ranking.

Next steps on Exportain

• How buying works, step by step: https://exportain.com/how-to-buy

• Background on all eleven rules: https://exportain.com/blog/incoterms-for-shipments-from-bangladesh

• Post a free RFQ stating your FAS port and alongside point: https://exportain.com/rfqs