Visual checkpoints for FCA — Free Carrier, Explained
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FCA in one paragraph
FCA (Free Carrier) means the seller delivers the goods, cleared for export, to a carrier or place named by the buyer — the seller's own premises, a freight forwarder's warehouse, or a terminal. Risk and cost transfer to the buyer at that named point. The seller's side includes export clearance; the buyer's side includes the main freight, insurance, import clearance, and delivery. FCA works for every mode of transport — sea, air, rail, road, and any combination.
Think of FCA as "EXW done properly for international trade": the seller still hands over early in the journey, but with the two problems of EXW fixed — the seller clears export (which only a local party can realistically do), and the handover point is somewhere your carrier actually operates.
The responsibility split, task by task
| Task | Seller | Buyer |
|---|---|---|
| Export packaging | ✔ | — |
| Transport to the named place | ✔ | — |
| Loading buyer's vehicle (if delivery at seller's premises) | ✔ | — |
| Export customs clearance | ✔ | — |
| Handover to the named carrier | ✔ Risk transfers here | Takes over from here |
| Main international freight | — | ✔ |
| Cargo insurance | — | ✔ (optional, advised) |
| Import clearance, duties & taxes | — | ✔ |
| Delivery to final destination | — | ✔ |
The named place decides one detail buyers miss: at the seller's premises, the seller loads your truck. At any other named place, the seller just arrives with the goods — unloading is your side. Name the place precisely in the contract.
Where risk transfers — the container gap FOB leaves open
Goods reach the named place, export-cleared
A forwarder's warehouse in Ningbo, a rail terminal, or the factory gate — wherever the contract names. Risk passes to the buyer at handover here.
The FOB problem FCA solves
Containers are handed to carriers days before they are lifted onto a vessel. Under FOB, risk only passes "on board" — so damage at the terminal sits in a gray zone neither side clearly owns. FCA closes that gap by transferring risk at the actual handover.
Buyer's carrier takes the cargo forward
Your forwarder books the main freight and issues its transport document from the named place. Insurance from this point is your call — see shipping insurance & risk.
FCA vs FOB: the practical comparison
| Factor | FCA | FOB |
|---|---|---|
| Transport modes | All modes — sea, air, rail, road | Sea and inland waterway only |
| Risk transfer point | Handover at the named place | Goods loaded on board the vessel |
| Container cargo fit | Recommended by the ICC | Common in practice, but leaves a terminal gray zone |
| Export clearance | Seller | Seller |
| Who loads the vessel | Buyer's carrier | Seller's side |
| Familiarity with Chinese suppliers | Lower — expect to explain it | Very high — the default quote |
Honest note: FOB remains the workhorse of China trade, and for full containers loaded at the port it works well in practice. FCA matters most when cargo is handed over inland — consolidation warehouses, rail terminals, air freight — or when your bank or insurer wants the risk line exactly where the handover happens. For the three-way comparison most buyers start with, see FOB vs CIF vs DDP.
When FCA is the right call
- Containerized cargo handed over before the port — the textbook FCA case, and the ICC's recommendation.
- Air, rail, or multimodal shipments — FOB doesn't legally fit these; FCA does.
- Consolidated orders — goods from several suppliers delivered to one forwarder's warehouse, each under FCA to the same named place. See freight consolidation.
- Letter-of-credit payments — Incoterms 2020 lets the parties agree that the carrier issues an on-board bill of lading to the seller under FCA, solving the classic LC documentation snag.
- Avoid FCA when the supplier only understands FOB and the shipment is a straightforward full container from the port — forcing an unfamiliar term invites mistakes.
FCA orders with a China-side partner
FCA's weak spot in China is unfamiliarity: many suppliers quote FOB by reflex and treat FCA as exotic. LIFA bridges that from China — agreeing the named place precisely, confirming who loads what, checking export documents before handover, and coordinating the delivery to your forwarder's warehouse through shipping coordination. The term on paper only protects you if the handover actually happens the way the term assumes.
Mistakes this guide prevents
- Naming a vague place. "FCA Ningbo" is ambiguous; "FCA [forwarder name] warehouse, Beilun, Ningbo" is a contract.
- Assuming the seller unloads at the terminal. Away from their premises, arrival is where the seller's duty ends.
- Using FOB for air freight. It isn't defined for it — FCA is the correct term.
- Leaving insurance unassigned. Neither FCA nor FOB obliges anyone to insure the main leg — decide, or the gap is yours.
Related guides in the Incoterms library.
Continue through shipping terms and the logistics decisions around them.
Incoterms Guide
The full overview of all eleven Incoterms® 2020 rules.
Read the guide 🧭EXW — Ex Works
The term with the smallest seller obligation — and its China catch.
Read the guide 💡FOB vs CIF vs DDP
The three-way comparison every first shipment negotiation involves.
Read the guide 🚢Logistics & Operations Hub
All freight, customs, and shipping-terms guides in one place.
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FCA, answered simply.
The questions importers ask most about Free Carrier terms.
Under FCA, the seller delivers export-cleared goods to a carrier or place named by the buyer — the seller's premises, a forwarder's warehouse, or a terminal. Risk and cost pass to the buyer at that named point. The seller handles export clearance; the buyer handles main freight, insurance, import clearance, and delivery.
FOB transfers risk when goods are loaded on board the vessel and is meant for sea freight only. FCA transfers risk earlier, at a named place such as a forwarder's terminal, and works for every transport mode. For containerized cargo the ICC recommends FCA, because containers are handed to carriers days before loading — a gap FOB leaves ambiguous.
It depends on the named place. If delivery is at the seller's premises, the seller loads the buyer's collection vehicle. If delivery is anywhere else — a terminal or forwarder's warehouse — the seller only needs to arrive with the goods ready for unloading; unloading and everything after is the buyer's side.
The buyer pays the main international freight, cargo insurance if wanted, import duties and taxes, and final delivery. The seller pays for getting the goods to the named place and for export clearance.
Use FCA when your cargo is containerized and handed to a carrier or forwarder before the port — which is most container shipments. FOB remains common in China trade and works well in practice, but FCA gives a cleaner risk line for container handovers at inland terminals or consolidation warehouses.
Yes. FCA works for all transport modes — air, sea, rail, road, and multimodal. That flexibility is one of its main advantages over FOB, which is defined only for sea and inland waterway transport.
Negotiating FCA or FOB with a Chinese supplier?
Send the quotation and your shipment plan. LIFA reviews the terms from China, pins down the named place, and coordinates the handover with your supplier and forwarder — so the Incoterm on paper matches what happens on the ground.
