Customs brokerage and international shipping terms guidance

Incoterms® 2020

FCA - Free Carrier

Under FCA, the seller delivers the goods to the carrier or another person nominated by the buyer at the named place. Risk transfers at that delivery point.

Any mode · Named place (carrier or another person nominated by the buyer)

FCA at a glance

Under FCA, the seller delivers the goods to the carrier or another person nominated by the buyer at the named place. Risk transfers at that delivery point.

Any mode or multimodalInsurance required by the rule: No

Shipment

Named location
Named place (carrier or another person nominated by the buyer)
Delivery point
When goods are delivered to the carrier/nominated person at the named place
Risk transfer
When goods are delivered to the carrier/nominated person at the named place

Responsibilities

Main carriage
Buyer arranges and pays
Export clearance
Seller
Import clearance
Buyer
Insurance
Neither party is required by FCA to contract for cargo insurance.

Contract

Common comparison
Compare with FOBFOB requires on-board delivery and is limited to sea/inland waterway.

Illustrative notation: FCA Port of Houston container terminal, Incoterms® 2020. Customize and copy below ->

Responsibility journey

Delivery point
When goods are delivered to the carrier/nominated person at the named place
Risk transfer
When goods are delivered to the carrier/nominated person at the named place
Seller sideBuyer sideDelivery + risk transfer
  1. Seller / exporter

    Cost
    Seller
  2. Origin pickup

    Cost
    Seller
  3. Export clearance

    Cost
    Seller
    Export
    Seller
  4. Origin terminal

    Cost
    Buyer
    Handoff
    Delivery + risk transfer
  5. Carrier handoff

    Cost
    Buyer
  6. Main carriage

    Cost
    Buyer
  7. Destination terminal

    Cost
    Buyer
  8. Import clearance

    Cost
    Buyer
    Import
    Buyer
  9. Final delivery

    Cost
    Buyer
  10. Buyer / importer

    Cost
    Buyer
Text alternative for FCA: Seller-paid cost through Export clearance. Delivery occurs at Origin terminal. Risk transfer at Origin terminal. Insurance: Neither party is required by FCA to contract for cargo insurance. Export clearance: Seller. Import clearance: Buyer. Main carriage: Buyer.

Who pays what under FCA?

FCA works for any transport mode and is often the practical alternative to FOB for containerized or multimodal cargo handed over before vessel loading.

Seller does

  • Deliver to the buyer’s nominated carrier or person at the named place
  • Complete export clearance
  • Provide documents/information needed for the buyer to take the goods

Buyer does

  • Nominate the carrier or receiving party
  • Arrange and pay main carriage
  • Handle import clearance and on-carriage

Not determined by the FCA rule alone

  • Cargo insurance contract
  • Payment terms or title transfer

When to use FCA

When FCA fits

  • Containerized exports
  • Multimodal moves where handoff occurs at a terminal or carrier depot before vessel loading

When to use FCA with caution

  • Situations that truly require delivery on board a named vessel (consider FOB for non-container sea cargo)

FCA shipment example

An exporter delivers a sealed container to the ocean carrier’s terminal in Houston as named under FCA. Export clearance is completed by the seller. The buyer’s freight contract covers the ocean voyage and import formalities at destination. Risk transfers at the Houston handoff—not when the vessel sails or arrives.

Common mistakes

  • Using FOB for container handoffs that occur before the goods are on board
  • Leaving the named place vague so delivery timing is disputed

How do you write FCA in a contract?

Include the acronym, the exact named location, and the edition.

Contract notation builder

Build an illustrative line with the acronym, named place or port, and Incoterms® 2020. Parties must agree the exact location; this does not create a contract.

FCA Port of Houston container terminal, Incoterms® 2020

Edition is fixed to Incoterms® 2020. Catalog example: FCA Port of Houston container terminal, Incoterms® 2020

Does FCA include insurance?

Neither party is required by FCA to contract for cargo insurance.

FCA compared with related terms

Use these comparisons when the shipment mode, handoff point, or insurance need does not match FCA.

  • FCA vs. FOB

    FOB requires on-board delivery and is limited to sea/inland waterway.

    FOB requires on-board delivery and is limited to sea/inland waterway.

    Open FOB details ->
  • FCA vs. EXW

    EXW leaves export clearance with the buyer; FCA usually does not.

    EXW leaves export clearance with the buyer; FCA usually does not.

    Open EXW details ->
  • FCA vs. CPT

    CPT shifts main-carriage cost to the seller while risk still transfers at origin handoff.

    CPT shifts main-carriage cost to the seller while risk still transfers at origin handoff.

    Open CPT details ->

View all Incoterms(R) 2020 terms in the comparison matrix

Frequently asked questions

Is FCA better than FOB for containers?

Often yes. When goods are handed to a carrier or terminal before they are on board, FCA Incoterms® 2020 usually matches operations more closely than FOB.

When research turns into an operational shipment, connect the term to the teams that execute freight, clearance, insurance, and trade advice.

Unsure which shipping term fits your movement?

Talk with a Crane trade or customs specialist about transport mode, handoff points, documentation, and clearance responsibilities. This guidance is educational and is not legal advice; the parties remain responsible for selecting contractual terms.

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Last reviewed July 30, 2026. Edition reference: Incoterms® 2020 (not a new calendar-year edition).