GlossaryEN1 min readUpdated: Jun 26, 2026
FCA (Free Carrier)
FCA (Free Carrier) is a multimodal Incoterm under which the seller fulfils its delivery obligation by handing the goods over to the named carrier at a named place—from that moment, risk and costs pass entirely to the buyer.
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Source: https://iccwbo.org/resources-for-business/incoterms-code/fca-free-carrier/
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Incoterms 2020 Simulator: Who bears costs & risk?
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Definition & Explanation
FCA (Free Carrier) is a multimodal Incoterm under which the seller fulfils its delivery obligation by handing the goods over to the named carrier at a named place—from that moment, risk and costs pass entirely to the buyer. If delivery takes place at the seller's premises, the seller is responsible for loading; if at any other location, the goods need only be placed at the carrier's disposal on the seller's transport. The seller has no obligation to arrange cargo insurance under FCA; that rests with the buyer. FCA is particularly relevant in container shipping: the Incoterms 2020 revision introduced the option for the buyer to instruct its carrier to issue an on-board bill of lading after handover at the terminal, enabling compliance with letter-of-credit requirements. Compared with FOB, FCA closes the well-known liability gap that arises when a seller delivers a container at the port gate but risk nominally transfers only at the ship's rail.
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⚖️ ICC Incoterms 2020
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