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Free carrier is a trade term requiring the seller of goods to deliver those goods to a named airport, shipping terminal, warehouse, or other carrier location specified by the buyer.
What does FCA Mean in shipping terms? The FCA Incoterm is an agreement that means “Free Carrier,” where the seller’s obligations are to deliver the cargo to an agreed-upon port, known as the “Named Place.”
FCA is commonly used in conjunction with a Forwarder Cargo Receipt (FCR), a document that proves that cargo has been received by a forwarder with the intention to be transported as per buyer’s conditions. FCR is a proof of delivery and can be used for document compliance instead of Bill of Lading.
FCA stands for “Free Carrier” and makes up 1 of the 11 Incoterms® currently used under Incoterm®2020 rules. This Incoterm® is designed to provide flexibility across various modes of transportation, including air, sea, or land, making it adaptable to a wide range of shipping needs.
Free Carrier (FCA) Can be used for any transport mode, or where there is more than one transport mode. A very flexible rule that is suitable for all situations where the buyer arranges the main carriage.
What Is FCA In Shipping Terms. For FCA (Free Carrier) shipping, the seller arranges most or all of the export country stages (e.g. customs, trucking within the export country). The buyer arranges all other stages to the cargo’s ultimate destination.
FCA (Free Carrier) is an Incoterm that specifies that the seller delivers the goods to a carrier or another nominated party (such as a freight forwarder) at an agreed location. At this point, the responsibility for the goods is transferred to the buyer. The flexibility in choosing the point of delivery is a key feature of FCA, which could be:
Delivery Terms in FCA Incoterms. Under FCA, delivery obligations depend on the agreed location: At the Seller’s Premises – The seller must load the goods onto the buyer’s transport at the seller’s site, at which point the buyer takes responsibility for the goods.
FCA is short for “free carrier.” Using this term, you should generally also specify the place of delivery – that’s the place where the seller hands over the goods to the carrier, before the main, international leg of the journey. (This place is sometimes referred to as the “named place.”) FCA is primarily meant to be used for containerized freight.
This article provides an in-depth look at the Free Carrier (FCA) Incoterm, which is pivotal in international trade. It covers the roles and responsibilities assigned to both sellers and buyers under FCA, explains the point of delivery, risk transfer, and cost implications.