Trade & Incoterms
FCA (Free Carrier)
An Incoterm where the seller delivers goods to the carrier or person nominated by the buyer at the named place. Suitable for all transport modes and often used instead of FOB for containerised cargo.
In depth
FCA works for any transport mode and is the most flexible Incoterm. The seller clears the goods for export and delivers them to a carrier nominated by the buyer at a named place. Where that named place is the seller's own premises, delivery happens when the goods are loaded onto the buyer's collecting vehicle; anywhere else, delivery happens when the goods arrive ready for unloading. Naming the place precisely matters, because it decides both where risk passes and who pays for the leg before it. Incoterms 2020 added an option under FCA for the buyer to instruct the carrier to issue an on-board bill of lading to the seller, which solved a long-standing problem for sellers under letters of credit.
Key points
- Any transport mode; the flexible replacement for EXW and FOB
- Seller handles export clearance
- Where risk passes depends entirely on the named place
- Incoterms 2020 added the on-board bill of lading option for letter-of-credit sales