Free Carrier
Free carrier (FCA) is an Incoterms rule in which the seller delivers goods, cleared for export, to the carrier or person the buyer nominates at a named place, where risk passes to the buyer.
Why it matters for ecommerce brands
FCA gives you control of your freight and moves risk at the handover point you choose, which is why many brands that book their own forwarders prefer it to FOB. The supplier clears export and delivers to your carrier at a named place, such as its factory or the forwarder's warehouse. For example, if a forklift at your forwarder's Shenzhen warehouse damages a $5,000 pallet after delivery under FCA, the loss is yours to recover from the forwarder or your insurer. Under FOB, risk would stay with the seller until goods were loaded on the vessel. Name the place precisely.
Origin
Free Carrier appeared in the 1980 Incoterms as FRC for containerized goods handed over at an inland point, and the 1990 revision simplified it into today's FCA term.
Common questions
- Should I use FCA or FOB for container shipments?
- FCA is generally better for containers because risk transfers when the supplier hands goods to your carrier or forwarder, often at a warehouse or container yard. FOB is meant for goods loaded on board a vessel, which suits bulk cargo more than containers.
- Who pays loading costs under FCA?
- If the named place is the seller's premises, the seller loads the goods onto your collecting vehicle. If it is elsewhere, such as a forwarder's warehouse, the seller delivers on its own truck ready for unloading, and your side handles unloading.
- Can I get an on board bill of lading under FCA?
- Yes. Incoterms 2020 lets the parties agree that the buyer will instruct its carrier to issue an on board bill of lading to the seller, which helps when a letter of credit requires one.