A trade term for arranging international shipments and transferring liability, the Free Carrier (FCA) Incoterms rule is one of the most versatile and widely used. It can be applied to any mode of transport (air, rail, road, or sea). It is the modern, professional alternative to FOB for non-maritime shipments.
How FCA Works
Under FCA, the seller is responsible for delivering the goods to a named place (usually a carrier's terminal, a forwarder's warehouse, or the seller’s own premises) and clearing them for export.
- Scenario A (Seller’s Premises): If the named place is the seller's warehouse, the seller is responsible for loading the goods onto the buyer's truck.
- Scenario B (Other Named Place): If the named place is a terminal or port, the seller is responsible for unloading them from their truck.
Transfer of Risk
The risk transfers from the seller to the buyer upon delivery of the goods to the carrier at the agreed-upon location. From that point on, the buyer handles all costs and risks, including the main international transport.
Why Use FCA Instead of FOB?
- Containerized Cargo: Most modern shipping involves containers delivered to a terminal, not "loaded over the ship's rail." FCA is the correct term for this.
- Multi-Modal: If you are shipping via air or truck, FOB is technically incorrect; FCA is the proper legal standard.
- Better Control: For the buyer, FCA offers the most control over the supply chain and costs, as they choose the carrier for the entire international journey.
Table: FCA vs. FOB
| Feature | FCA | FOB |
| Transport Mode | Any (Air, Land, Sea) | Sea / Waterway only |
| Freight | Buyer | Seller |
| Insurance | Buyer (Optional) | Seller (Mandatory) |
| Risk Transfer | When handed to the carrier | When loaded on the ship |