GlossaryEN1 min readUpdated: Jun 22, 2026
FCA (Free Carrier)
FCA – Free Carrier – is an Incoterm under which the seller delivers the goods, cleared for export, to a named carrier or other nominated party at a specified place.
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Source: https://iccwbo.org/business-solutions/incoterms-rules/
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Incoterms 2020 Simulator: Who bears costs & risk?
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Definition & Explanation
FCA – Free Carrier – is an Incoterm under which the seller delivers the goods, cleared for export, to a named carrier or other nominated party at a specified place. Risk passes from seller to buyer at that handover point; all subsequent freight, insurance, and import customs costs fall to the buyer. Unlike FOB, which applies exclusively to sea transport and ties the risk transfer to loading aboard the vessel, FCA covers all modes of transport – road, rail, air, sea, and multimodal chains. This makes it particularly well suited to containerised shipments, where handing over a full container at an inland depot or container terminal is far more practical than waiting for vessel loading. Incoterms 2020 introduced a targeted addition: the parties may explicitly agree that the buyer will instruct its carrier to issue an on-board bill of lading to the seller, directly addressing a common documentary requirement under letters of credit.
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⚖️ ICC Incoterms 2020
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