——SOURCING GLOSSARY
FCA Incoterm (Free Carrier) — explained simply
Under the FCA (Free Carrier) Incoterm, the seller delivers your goods — already cleared for export — to a carrier or place that you choose. The moment the carrier takes them, the risk passes to you.
Unlike Ex Works, the seller handles export paperwork. Unlike FOB, FCA works for any transport mode — sea, air, rail or truck.
What FCA covers — at a glance
Seller does
Pack the goods, clear them for export, deliver to your named carrier/place.
Risk passes
When the carrier takes the goods (not at your warehouse).
You do
Main freight and everything after the handover.
Works for
Containers, air, rail, multimodal — not just sea.
Why the ICC recommends FCA over FOB for containers
This is the part most buyers miss. With FOB, risk only passes when the goods are loaded on board the ship. But your container is usually handed in at the terminal days earlier — so there’s a gap where the goods sit at the port and nobody’s insurance clearly covers them.
FCA closes that gap: risk passes cleanly when the carrier takes the container at the terminal. That’s why the International Chamber of Commerce (ICC) advises using FCA, not FOB, for containerised cargo.
Frequently asked questions
Free Carrier — the seller delivers export-cleared goods to a carrier you nominate, and risk passes to you at that handover.
The seller. That’s a key advantage over Ex Works, where export clearance falls on you.
Usually yes. FOB leaves a risk gap between the terminal and vessel loading; FCA passes risk cleanly at the carrier handover, and it also works for air, rail and multimodal.
Getting your Incoterms right is half of cost control. We handle the other half.
From supplier negotiation to freight optimization, we help you cut landed cost without cutting corners.