Glossary
Written by

In this article

Example H2
Supply Chain Glossary
INCOTERMS
ISO 14083
Import duty
In-gauge cargo
Inbound logistics
Inbound visibility
Inland transport request
Intermodal transportation
International Convention for Safe Containers (CSC)
International Maritime Organization (IMO)
Inventory turnover
LCL Freight
Last mile delivery
Late submission
Laytime
Lead logistics provider (LLP)
Less-than-truckload (LTL) freight
Letter of indemnity
Load / discharge confirmation
Load / loading of container
Load board
Load list
Load optimization
Load tender
Logistics 4.0
Logistics document management
Logistics route optimization
Logistics service provider
Logistics visibility
Manifest corrector
Marine insurance
Maritime Mobile Service Identity (MMSI)
Master Bill of Lading (MBL)
Material Requirements Planning (MRP)
Merchant haulage
Minimum Order Quantity (MOQ)
Multimodal transport
Neopanamax Ship
Network / vessel capacity
Non-Vessel Operating Common Carrier (NVOCC)
Off dock storage
On-time in-full (OTIF)
Order accuracy
Order lead time
Out-of-gauge cargo
PAPS number
PARS number
POD (Port of Discharge)
POL (Port of Loading)
Packing list
Panamax Ship
Port
Port call
Port congestion
Port of Entry (POE)
Port pair
Post Panamax Vessel
Re-export
Real-time transportation visibility (RTTV)
Reefer container
Release reference number
Reverse logistics
Roll-on/Roll-off (RORO) shipping
Route plan
SCAC Code
Safety stock
Sanctions screening
Scope 3 emissions
Sea Waybill
Seal
Shipment
Shipment visibility
Shipper
Shipping Alliances
Shipping Instruction
Shipping lanes
Shipping manifest
Short shipment
Slotting
Special cargo
Special equipment
Stockout
Stowage
Supplier risk management
Supply chain 3.0
Supply chain 4.0
Supply chain automation
Supply chain collaboration
Supply chain control tower
Supply chain data
Supply chain finance (SCF)
Supply chain network design
Supply chain resilience
Supply chain risk management
Supply chain traceability
Supply chain visibility
Supply planning
Terminal
Terminal departure report (TDR)
Terminal move
Published: 

FCA (Free carrier)

What does FCA mean in shipping?

FCA, or Free Carrier, is an Incoterm (International Commercial Term) used in international trade to define the point at which the seller's obligations are fulfilled and the buyer assumes responsibility for the goods. Under FCA, the seller delivers the goods, cleared for export, to the carrier or another party nominated by the buyer at a specified place. This term is versatile and can be used for any mode of transport, including air, sea, rail, and road.

What is the difference between FCA and FOB shipping?

While both FCA and FOB terms delineate where the seller's responsibility ends and the buyer's begins, they differ mainly in their application and the specifics of delivery:

  • FCA (Free Carrier):
    • Delivery Point: The seller delivers the goods to a carrier or another party at a location specified by the buyer, which can be the seller's premises or another named place.
    • Modes of Transport: Can be used for any mode of transport, including multi-modal.
    • Risk Transfer: Risk transfers to the buyer once the goods are delivered to the carrier.
  • FOB (Free On Board):
    • Delivery Point: The seller is responsible for the goods until they are loaded onto a ship at the port of shipment.
    • Modes of Transport: Primarily used for sea or inland waterway transport.
    • Risk Transfer: Risk transfers to the buyer once the goods pass the ship's rail at the port of shipment.

Who pays for FCA shipping?

Under FCA terms, the costs and responsibilities are split between the seller and the buyer:

  • Seller: Covers costs related to delivering the goods to the specified location, including export duties, taxes, and any charges up to the point of delivery.
  • Buyer: Takes over responsibility and costs once the goods are handed over to the carrier. This includes transportation costs from the point of delivery to the final destination, insurance, and any import duties or taxes.

‍