Free Carrier (FCA)
An Incoterm where the seller delivers goods, cleared for export, to a carrier nominated by the buyer at a named place. Risk transfers at the point of handoff to the carrier.
Free Carrier (FCA) is an increasingly popular Incoterm that works for any mode of transport, unlike FOB which is strictly for sea freight. Under FCA terms, the seller is responsible for export clearance and delivering the goods to a carrier or location specified by the buyer. This could be the supplier's factory, a freight forwarder's warehouse, or a container freight station.
FCA is particularly useful when shipping by air, by truck (for example, from Mexico under USMCA), or when using multimodal transport. It is also the recommended alternative to FOB when the buyer wants the supplier to handle export formalities but the goods are not being loaded directly onto a vessel. The ICC (International Chamber of Commerce) has been encouraging the use of FCA over FOB for containerized cargo, since container goods are typically delivered to a terminal rather than loaded directly onto a ship.
For DTC importers, FCA works well when you want your freight forwarder to pick up goods directly from the factory or from an inland consolidation point. It avoids the ambiguity of the FOB "ship's rail" transfer point for containerized cargo and provides a cleaner risk transfer moment.
Why it matters
Consider FCA for air shipments or when your freight forwarder picks up goods from the factory. It provides clearer risk transfer than FOB for containerized and non-sea shipments.
Practical Tip
Consider FCA for air shipments or when your freight forwarder picks up goods from the factory. It provides clearer risk transfer than FOB for containerized and non-sea shipments.
You'll hear this when…
When requesting quotes
“"Please provide your best FCA price for 500 units shipped to Los Angeles."”
When reviewing shipping documents
“"The bill of lading shows the goods were transferred under Free Carrier (FCA) terms at the port of Shenzhen."”
When negotiating payment
“"We'd like to confirm whether your quoted price is on Free Carrier (FCA) basis before finalizing the purchase order."”
Related Terms
Free on Board
FOBAn Incoterm where the seller delivers goods on board the vessel at the named port of shipment. Risk transfers from seller to buyer once goods pass the ship's rail.
Ex Works
EXWAn Incoterm where the seller makes goods available at their premises. The buyer bears all costs and risks from the factory door onward, including export clearance.
Delivered at Place
DAPAn Incoterm where the seller delivers goods to a named destination, ready for unloading. The buyer is responsible for import clearance, duties, and unloading.
Incoterms
A set of 11 internationally recognized trade terms published by the International Chamber of Commerce (ICC) that define the responsibilities, costs, and risks between buyers and sellers in international transactions.
Freight Forwarder
A logistics company that arranges international shipping on your behalf, handling booking cargo space, documentation, customs brokerage, and coordinating the door-to-door movement of your goods.
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