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Incoterms explained: Free Carrier (named place of delivery) – FCA

The FCA term can be used for any mode of transport and requires the seller to deliver the goods in the country of origin, cleared for export, at a named place (typically an airport, terminal or other place where the carrier operates).

The goods are delivered by the seller to a carrier nominated by the buyer and the buyer is responsible for all costs to move the goods from the named place of delivery to the destination.

Once the seller delivers the goods to the agreed port or area, the liability transfers from the seller to the carrier or buyer. As part of the liability transfer, the seller is only responsible for delivery to the specified destination and not the unloading of the goods from the delivery vehicle.

The FCA and EXW incoterms are the most commonly used terms by the buyer to control the cost of transport and transit time however assumes the greatest risk. If this is not the objective of both parties, an incoterm in the prepaid family of terms may be more suitable.

The above Incoterm description is a general overview and the Incoterms 2010 Rules published by the International Chamber of Commerce should be consulted to avoid misunderstanding. Alternatively, contact us to discuss which Incoterm applies to your shipment.


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