FCA (Free Carrier)
An Incoterm where the seller clears goods for export and hands them to the buyer's carrier at a named place, where risk passes to the buyer.
TL;DR: FCA means the seller clears the goods for export and delivers them to the carrier chosen by the buyer at an agreed place. Risk and most costs pass to the buyer at that point.
FCA works for any mode of transport, including sea, air, rail and truck. The named place decides how delivery works. If it is the seller’s premises, the seller must load the goods onto the buyer’s vehicle. If it is another place, such as a forwarder’s warehouse or a container yard, the seller delivers the goods on its own vehicle ready for unloading, and the buyer’s carrier unloads them.
The seller handles export clearance. The buyer pays the main freight, insurance, import clearance and duties. This makes FCA a practical middle ground between EXW and FOB.
Incoterms 2020 added an option for FCA sea shipments. The parties can agree that the buyer will instruct its carrier to issue an on-board bill of lading to the seller. This helps when payment is by letter of credit, which often requires that document.
For containerized goods, many trade experts suggest FCA instead of FOB, because the seller usually hands containers over at a terminal before they are loaded on the ship. For LCL cargo delivered to a consolidation warehouse, FCA at that warehouse reflects what actually happens. Compare with EXW, FOB and CPT.