Glossary
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Example H2
Supply Chain Glossary
ABC analysis
Advanced Shipping Notice (ASN)
Agile supply chain
Air waybill (AWB)
Arrival notice
Automatic Identification Systems (AIS)
Backhauling
Backorder
Bayplan
Beneficial Cargo Owner (BCO)
Bill of Lading (B/L)
Blank sailing
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Bonded warehouse
Booking request
Buffer stock
Bulk cargo
Bullwhip effect
CIF (Cost, Insurance and Freight)
Cargo release
Cargo survey
Carrier
Carrier haulage
Carrier scorecard
Certificate of origin
Commercial invoice
Commodity
Confirmed bookings
Consignee
Consignment inventory
Consignor
Container freight station
Container grade
Container packing certificate
Container rollover
Cross docking
Customer
Customs and transit documentation
Customs broker
Customs clearance
Customs manifest
Cut-off
Cycle counting
DAP (Delivered At Place)
DDP (Delivered Duty Paid)
DDU (Delivered Duty Unpaid)
DPU (Delivered At Place Unloaded)
Dangerous goods declaration
Deadheading
Demurrage
Depot
Detention charges
Digital twin
Dimensional weight
Discharge / Discharging of container
Discharge instructions
Dock receipt
Drayage
Drop shipping
EDI booking
EORI number
ETA (Estimated Time of Arrival)
EXW (Ex Works)
Economic Order Quantity (EOQ)
Electronic Product Code (EPC)
Empties
Equipment
Equipment discharge / load report
Event
Exception
Expedited freight
FAS (Free Alongside Ship)
FCA (Free carrier)
FOB (Free on board)
Feeder operator
Feeder vessel
Fill rate
Financial clearance status
Flags of Convenience
Fourth Party Logistics (4PL)
Freight forwarding
Freight visibility
Full truckload (FTL) freight
GLEC framework
Gate-out
German Supply Chain Act
Global Trade Item Number (GTIN)
Goods Receipt Note (GRN)
Haulage equipment
Haulage requirements
Haulage type
Haulier
House Bill of Lading (HBL)
Hub and spoke model
INCOTERMS
ISO 14083
Import duty
In gauge cargo
Inbound logistics
Inland transport request
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.

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