FCA, or Free Carrier, is an Incoterm where the seller delivers export-cleared goods to a carrier or named place chosen by the buyer. Risk transfers from the seller to the buyer when the goods are handed over at that agreed point. FCA can be used for any transport mode, including truck, rail, air, ocean, and multimodal shipping. It is often more flexible than FOB for containerised freight because the transfer point can be a warehouse, terminal, forwarder facility, or carrier location.
Key Responsibilities Under FCA
- Seller: export clearance, delivery to the named place or carrier
- Buyer: international freight, cargo insurance, import clearance, all destination costs
FCA is preferred over FOB for containerized cargo because risk transfers when goods are handed to the first carrier, not when they are loaded on the vessel.
Related terms: EXW, Incoterms, Export Declaration.
