Free Carrier
Seller delivers the cleared goods to a carrier chosen by the buyer at an agreed place.
FCA (Free Carrier) means the seller delivers the goods, cleared for export, to a carrier nominated by the buyer at the named place. Delivery can be at the seller's premises (in which case the seller loads) or at a forwarder's warehouse (in which case the seller delivers unloaded).
FCA works for any mode of transport and is the recommended Incoterms 2020 replacement for EXW on international shipments. Under Incoterms 2020, the buyer may instruct the carrier to issue an on-board bill of lading to the seller, which helps with letter-of-credit transactions.
This is one of the most flexible terms and fits containerised trade and multimodal shipments well.
Who is responsible for what
- Cost
- Seller covers pre-carriage to the named place; buyer covers main carriage onwards.
- Risk
- Risk transfers when goods are handed to the buyer's carrier at the named place.
- Insurance
- Not obligatory; usually arranged by the buyer.
- Duties
- Seller clears for export, buyer clears for import.
When to use
Containerised shipments, where the buyer has preferred forwarders or carriers.
Transport modes
air, sea, road, courier
FAQ
- Is FCA the same as FOB for containers?
- No. FOB only applies to non-containerised sea freight. For container shipments, FCA is the correct term because risk transfers at the terminal, not when goods cross the ship's rail.
Create a FCA invoice
Start the wizard with FCA pre-selected. Takes about a minute.
Start with FCA