Free Carrier (FCA)
Definition: What is FCA?
FCA, or “Free Carrier,” is an Incoterm where the seller hands over the goods to the carrier or another party nominated by the buyer at a named location. This can be the seller’s premises or another point like a terminal. Risk transfers at the moment of handover, and from then on, the buyer assumes all transport costs and risks.
Seller’s responsibilities under FCA:
- Deliver the goods to the named place and hand them over to the carrier
- Package the goods and provide required documents
- Handle export clearance and pay related fees
- Load goods onto the collecting vehicle if delivery is at seller’s premises; otherwise, make goods ready for pickup at the agreed location
Buyer’s responsibilities under FCA:
- Select and instruct the carrier
- Pay for freight, insurance, and import clearance
- Bear risk from the moment the goods are handed to the carrier
- Arrange insurance coverage if desired (neither party is obligated to insure under FCA)
When to use FCA
FCA is a flexible Incoterm suitable for almost any mode of transport. It works well when the buyer has more control over the main leg of transportation or wants to manage shipping through their own logistics network. Free Carrier is particularly recommended for containerized goods and multimodal transport arrangements.
Important considerations for FCA:
- Neither seller nor buyer is obligated to arrange insurance – this must be negotiated separately
- Seller loads goods only if delivery is at seller’s premises; otherwise goods are ready for unloading
- Under Incoterms 2020, buyer can instruct carrier to issue on-board bill of lading to seller for letter of credit purposes
- Precise delivery point must be clearly specified in the contract to avoid disputes
- Terminal Handling Charges (THC) may apply and should be clarified to avoid unexpected costs
How time:matters supports FCA shipments
With time:matters, buyers can count on seamless coordination from the point of pickup. We ensure a smooth transition at the handover point, offering express options and proactive monitoring so your cargo stays on track — even when it’s in your hands.