What is FCA (Free Carrier)?
Free Carrier (FCA) is an Incoterms rule for any mode of transport under which the seller delivers the goods, cleared for export, to the carrier or person nominated by the buyer at a named place — the seller's premises, a container terminal, a rail yard or a forwarder's depot. Risk passes to the buyer at that point, and the buyer arranges and pays for the main carriage.
At a glance
| Term | FCA |
|---|---|
| Definition | Free Carrier — seller hands the goods, export-cleared, to the buyer's carrier at a named place; works for any transport mode. |
| Category | Logistics & delivery |
| Related terms | Incoterms, EXW (Ex Works), FOB, CFR, CIF, DAP, DDP, B/L (Bill of Lading), Laycan, Demurrage |
What it is used for
FCA is the right rule when the buyer controls the freight — for containerised cargo, rail and road consignments, and multimodal moves where FOB's on-board delivery point would not match how the goods are actually handed over.
Key points
- The seller clears the goods for export and delivers them to the buyer's carrier at the named place; if that place is the seller's premises the seller also loads the truck.
- If the named place is anywhere else, delivery happens when the goods are on the seller's vehicle ready for unloading — the buyer's carrier unloads.
- Risk and cost transfer at the named place; main carriage, insurance and import clearance are the buyer's.
- Incoterms 2020 lets the parties agree that the buyer instructs the carrier to issue an on-board bill of lading to the seller, so FCA can work with a letter of credit.
What to watch for
- Name the delivery place precisely. 'FCA Rotterdam' is not enough — a terminal or address avoids disputes over where risk passed.
- Under FOB the seller bears risk until the goods are on board; under FCA it can pass at a depot days earlier. Make sure your insurance attaches accordingly.
- If the letter of credit demands an on-board bill of lading, use the 2020 on-board option or the seller may struggle to get paid.
Frequently asked questions
Why use FCA instead of FOB for containers?
Containers are handed to the carrier at a terminal, not lifted on board by the seller. Under FOB the seller carries risk while the box sits in the terminal for days; FCA passes it at the handover, which matches reality.
Who loads the goods under FCA?
If delivery is at the seller's premises, the seller loads the buyer's vehicle. Anywhere else, the seller delivers on their own vehicle and the buyer's carrier unloads.
Can FCA be used with a letter of credit?
Yes. Incoterms 2020 added an option for the buyer to instruct its carrier to issue an on-board bill of lading to the seller, which satisfies most L/C document requirements.
Related terms
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