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FCA Free Carrier: The Hand-Off
Under FCA Free Carrier term, the seller delivers the goods to a carrier chosen by the buyer. The risk transfers at this point, making it a balanced term. Imagine a relay race, where the baton is smoothly handed off from one runner to another. That’s FCA in a nutshell. Introduced in 1980, FCA was a response to the increasing use of containers in shipping, showcasing how Incoterms adapt to logistical changes.
Seller’s Obligations:
Deliver the goods to the carrier nominated by the buyer at the seller’s premises or another named place.
Clear the goods for export.
Buyer’s Obligations:
Arrange and pay for subsequent transportation.
Clear the goods for import, paying any customs duties.
Read FCA term in Wikipedia or inquire us for cargo booking and the newest prices.
FCA instance:
FCA Free Carrier is a term that can be more easily understood than other terms. Generally, it’s very easy to understand the three terms: FCA, FOB and CIF.
FCA Shenzhen instance
For example, the consumer speaker manufacturer TONLY from Huizhou China ships a container of mini speakers to Spencer Buyer in Lyons France under an FCA shipping term agreement. Spencer chooses to use his shipper with whom he’s cooperated before. TONLY agrees. Then TONLY delivers the goods to the shipper. At this point, all liability passes to Spencer.
Simply speaking, it is a term mixed FOB price + Shipping cost, but excluding insurance for shipping. Hence, it’s also written as CNF (Cost and Freight). If the term FCA Free Carrier is expanded to FOB price + Shipping cost + Shipping insurance, it becomes CIF term.
