{"id":3350,"date":"2024-08-29T18:23:13","date_gmt":"2024-08-29T18:23:13","guid":{"rendered":"https:\/\/www.shipbob.com\/uk\/blog\/free-carrier-fca\/"},"modified":"2025-10-07T21:33:01","modified_gmt":"2025-10-07T21:33:01","slug":"free-carrier-fca","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/uk\/blog\/free-carrier-fca\/","title":{"rendered":"The Complete Guide to Free Carrier (FCA) – Shipping Incoterms\u00ae"},"content":{"rendered":"\n

Table of Contents<\/p>

** Minutes<\/p><\/div><\/div>\n

What is Free Carrier (FCA Incoterms)?<\/a><\/p>\n\n\n\n

What are the obligations for sellers and buyers in Free Carrier? <\/a><\/p>\n\n\n\n

Key changes in FCA Incoterms 2020<\/a><\/p>\n\n\n\n

What are the differences between Free Carrier and Ex Works?<\/a><\/p>\n\n\n\n

Other Incoterms alternatives to consider<\/a><\/p>\n\n\n\n

How ShipBob helps with shipping logistics and ecommerce fulfilment <\/a><\/p>\n\n\n\n

Free Carrier (FCA) FAQs<\/a><\/p>\n<\/div>\n\n\n\n

When shipping goods, especially internationally, sometimes a seller is primarily responsible for the pre-carriage shipping and export requirements.<\/p>\n\n\n\n

This shipping practice is known as “Free Carrier” and it involves a set of different rules known as Incoterms\u00ae: essential terms of trade for the sale of goods.<\/p>\n\n\n\n

FCA is used more so for international shipments, and it works for different modes of transport including LCL (less than container load), FCL (full container load), and air when shipping freight<\/a>.<\/p>\n\n\n\n

Incoterms were most recently revised in 2020, laying the groundwork for shipping goods FCA with a Bill of Lading with on-board notation.<\/p>\n\n\n\n

This article discusses the different FCA Incoterms rules, when they apply, and the benefits and disadvantages of FCA.<\/p>\n\n\n\n

What is Free Carrier (FCA Incoterms)?<\/h2><\/div>
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FCA Incoterm, or “Free Carrier (FCA),” is a trade agreement that identifies a seller of goods as responsible for their delivery to an end destination, or “Named Place,” specified by the buyer. \u201cFree\u201d alludes to the seller\u2019s obligation (or the buyer\u2019s lack of obligation) to manage the transfer of goods to the named place.<\/p>\n\n\n\n

As per the FCA shipping terms, the seller can choose the location if the buyer doesn’t offer a location.<\/p>\n\n\n

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What are the obligations for sellers and buyers in Free Carrier?<\/h2><\/div>
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Everyone talks about the importance of getting your shipping logistics<\/a> right. <\/p>\n\n\n\n

And the key to doing so is ensuring that the different obligations of both sellers and buyers are carefully outlined and enforced.<\/p>\n\n\n\n

Here is a table that compares the obligations of the buyers and sellers as per the Free Carrier terms:<\/p>\n\n\n\n

Seller\u2019s Obligations<\/strong><\/td>Buyer\u2019s Obligations<\/strong><\/td><\/tr>
Manage commercial invoices and documentation.<\/td>Pay for the order as per the sales contract.<\/td><\/tr>
Load cargo into the buyer\u2019s transport if the seller is meant to only deliver the goods to one of their own premises.<\/td>Unload the cargo if the goods are sent by the seller to a named location, other than the seller\u2019s premises.<\/td><\/tr>
Pay the cost of pre-shipment checks.<\/td>Pay the post-carriage shipping. <\/td><\/tr>
Package and ready the order for shipping to the buyer.<\/td>Pay for the shipping insurance<\/a>.<\/td><\/tr>
Manage export license and export formalities.<\/td>Manage and pay for the main carriage.<\/td><\/tr>
Manage pre-carriage of the goods to the named place of delivery.<\/td>Manage import formalities.<\/td><\/tr>
Offer proof of delivery<\/a>.<\/td>Pay for the pre-shipment inspection for import clearance.<\/td><\/tr>
<\/td>Pay the loading charges.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

To understand this better, let’s look at a hypothetical scenario.<\/p>\n\n\n\n

Example of a transaction using FCA<\/h3>\n\n\n\n

A US-based seller Trent ships orders to a UK-based buyer Bryan.<\/p>\n\n\n\n

As per FCA, Bryan must commission a carrier and freight forwarder to transport the goods and Trent must arrange for pre-carriage from his warehouse to a named place, such as a terminal or transport hub, or forwarder\u2019s warehouse. <\/p>\n\n\n\n

The moment the shipper receives the goods at the named place, the liability for the goods transfers to Bryan. <\/p>\n\n\n\n

Note:<\/strong> Export formalities are undertaken by the seller at the port of export, while import formalities are taken care of by the buyer at the destination port. <\/p>\n\n\n\n

When should Free Carrier be used?<\/h3>\n\n\n\n

It’s best to use FCA in the case of international shipping<\/a>, in which the buyer takes complete responsibility for the main carriage of the goods. <\/p>\n\n\n\n

It also works out well to use FCA when shipping containerized goods. Containerized refers to the practice of carrying goods in containers of the same shape and size for shipping<\/p>\n\n\n\n

Additionally, lots of sellers who would like to avoid the struggles of managing a large chunk of shipping logistics prefer this option.<\/p>\n<\/div><\/section>\n\n\n\n

Key changes in the updated FCA Incoterms<\/h2><\/div>
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Incoterms are a collection of shipping terms that appear on shipment contracts.<\/p>\n\n\n

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These rules are used to decide the time and place of delivery and when the ownership of the goods changes, plus the cost and risk of shipping transfers from the seller to the buyer. <\/p>\n\n\n\n

These terms are updated every 10 years (with the last update in 2020).<\/p>\n\n\n\n

As per the Incoterms 2020, the 11 types of commercial terms set by the International Chamber of Commerce (ICC)<\/a> are:<\/p>\n\n\n\n

Used for any mode of transport<\/strong><\/td>Used for transport by sea and inland waterway<\/strong><\/td><\/tr>
EXW \u2013 Ex Works<\/td>FAS \u2013 Free Alongside Ship<\/td><\/tr>
FCA \u2013 Free Carrier <\/td>FOB \u2013 Free on Board <\/td><\/tr>
CPT \u2013 Carriage Paid To<\/a><\/td>CFR \u2013 Cost and Freight <\/td><\/tr>
CIP \u2013 Carriage and Insurance Paid To<\/td>CIF \u2013 Cost, Insurance & Freight<\/td><\/tr>
DPU \u2013 Delivered At Place Unloaded<\/td><\/td><\/tr>
DAP \u2013 Delivered At Place<\/td><\/td><\/tr>
DDP \u2013 Delivered Duty Paid<\/td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

In the Incoterms 2020, it was established that the buyer can instruct the carrier (in the sales contract) to issue a bill of lading (BOL) to the seller after the goods have been loaded onto the international carrier. <\/p>\n\n\n\n

This BOL is required by the seller to prove that the cargo was loaded and satisfies the terms of a letter of credit.<\/p>\n\n\n\n

How do they differ from Incoterms 2010?<\/h3>\n\n\n\n

Pre-2020, the buyer would hire the carrier, which meant that the carrier has no obligations to the seller. This spelled trouble for the seller that needs a BOL, from the carrier, to get paid.<\/p>\n\n\n\n

For the FCA, the biggest change in Incoterms 2020 (as compared to Incoterms 2010), is that the buyer can request the carrier to give the seller an onboard BOL.<\/p>\n<\/div><\/section>\n\n\n\n

What are the differences between Free Carrier and Ex Works?<\/h2><\/div>
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The trade term Ex Works (EXW) is a shipping rule that states the seller only needs to ensure that goods are available and sent to their warehouses or place of business. <\/p>\n\n\n\n

From there, the buyer is expected to pick up shipments and manage the rest of the freight.<\/p>\n\n\n\n

It is different from FCA, which is more balanced when it comes to the division of risk and cost between seller and buyer.<\/p>\n\n\n\n

When is FCA better than EXW (and when it is not)?<\/h3>\n\n\n\n

FCA is considered a better option than EXW since it does not put the buyer in a difficult position of arranging local transport and dealing with customs at the seller\u2019s location.<\/p>\n\n\n\n

Some of the other major differences between the two is outlined below:<\/p>\n\n\n\n

FCA<\/strong><\/td>EXW<\/strong><\/td><\/tr>
The seller delivers goods to a carrier, at a location decided by the buyer, for the buyers to pick up.<\/td>The seller delivers goods to their own premises for the buyers to pick up.<\/td><\/tr>
Fair sharing of responsibilities and risk between buyer and seller.<\/td>Inconvenient for the buyer since the majority of the shipping risk and responsibility falls on them.<\/td><\/tr>
The buyer assumes risk and cost once the goods reach the decided location\/carrier hub. Title transfers to the buyer.<\/td>Convenient for the seller as they have very little responsibility.<\/td><\/tr>
Used for container transport.<\/td>Used by micro and small businesses that do not have the bandwidth to deal with shipping logistics.<\/td><\/tr>
Commonly used in international shipments.<\/td>Commonly used for domestic trade.<\/td><\/tr>
Delivery is considered to have happened when the goods are loaded onto the carrier arranged by the buyer.<\/td>Delivery is considered to have happened when the seller presents the order items to the buyer for collection at a pre-agreed location.<\/td><\/tr>
Loading risk stays with the seller.<\/td>Loading risk is on the buyer.<\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div><\/section>\n\n\n\n

Other Incoterms alternatives to consider<\/h2><\/div>
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Apart from FCA, there are multiple other Incoterms that can aid in avoiding miscommunication between sellers and buyers. <\/p>\n\n\n\n

Here are some of the popular ones:<\/p>\n\n\n\n

Free on Board (FOB) shipping terms<\/h3><\/div>
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FOB refers to when goods are being transported only by sea or inland waterway. <\/p>\n\n\n\n

The cargo is the responsibility of the seller until it is loaded onto the vessel and cleared for export from the predetermined port. At this point, the transfer of risk happens with the title deed also switching to the buyer.<\/p>\n\n\n\n

FOB is the best Incoterm for sellers who sell goods in bulk and don’t containerize their cargo.<\/p>\n<\/div><\/section>\n\n\n\n

Ex Works (EXW) shipping terms<\/h3><\/div>
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EXW is when the seller has to take responsibility for the shipment, aside from ensuring the goods are available, packed, and delivered to a specified location. <\/p>\n\n\n\n

This means that the buyer needs to manage the loading of goods onto the carrier, manage export procedures, and any onward transport. All costs incurred after the goods are dropped off by the seller are the buyer\u2019s responsibility.<\/p>\n\n\n\n

This is an Incoterm commonly used during domestic trade for different (or multiple) types of transport. <\/p>\n\n\n\n

It’s difficult to implement in international trade because it’s difficult for the buyer to manage the loading and export formalities in a different country. And in case the seller helps with the loading, as a favour, it will still be at the buyer\u2019s risk. <\/em><\/p>\n\n\n\n

<\/p>\n<\/div><\/section>\n\n\n\n

Cost, Insurance, and Freight (CIF) shipping terms<\/h3><\/div>
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Similar to FOB, with CIF the seller is responsible for the cost and management of insurance for the goods until it reaches the named port (pre-carriage). <\/p>\n\n\n\n

And the rule expects the seller to only secure the shipment with a minimum insurance cover. Buyers who want to better safeguard their shipments from risks will need to specifically mention the required coverage amount in the commercial agreement.<\/p>\n\n\n\n

It is only used for shipments via sea or inland waterways.<\/p>\n\n\n\n

<\/p>\n<\/div><\/section>\n\n\n\n

Delivery Duty Paid (DDP) shipping terms<\/h3><\/div>
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With DDP shipping<\/a>, the seller assumes a large chunk of the risk, cost, and responsibility. <\/p>\n\n\n\n

This includes arranging for the carriage, delivering goods at the named place, and ensuring that it is cleared for import. All applicable taxes and duties (e.g. VAT, GST<\/a>) are paid by the seller. <\/p>\n\n\n\n

DDP the opposite of FAC in terms of the volume of the seller\u2019s responsibilities.<\/p>\n\n\n\n

The risk transfers to the buyer only when the goods reach the buyer and are ready to unload from the incoming mode of transport.<\/p>\n\n\n\n

This can be used in case of shipments that are sent via any (or many) means of transport.<\/p>\n<\/div><\/section>\n<\/div><\/section>\n\n\n\n

How ShipBob helps with shipping logistics and ecommerce fulfilment <\/h2><\/div>
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Navigating the complexities of Free Carrier (FCA) Incoterms can be challenging. FCA terms require a nuanced understanding of logistical responsibilities, especially when it comes to ensuring compliance and maximising efficiency in global trade operations. <\/p>\n\n\n\n

ShipBob offers a comprehensive suite of solutions tailored to meet the diverse needs of modern ecommerce brands. <\/p>\n\n\n\n

With everything from a global network of fulfilment centres to advanced technology for seamless order processing, ShipBob empowers businesses to achieve compliance with FCA terms while enhancing operational efficiency and customer satisfaction. <\/p>\n\n\n\n

Below, we explore various ShipBob offerings that can transform your fulfilment strategy, ensuring that your operations are not only FCA-compliant but also positioned for scalable growth and success.<\/p>\n\n\n\n

Optimise global fulfilment with ShipBob’s network<\/h3>\n\n\n\n

ShipBob has a global network of over 50 fulfilment centres across the US, Canada, the UK, the EU, and Australia. Our network of dozens of facilities allows you to place inventory closest to your customers’ end destination, reducing time in transit, and shipping costs, and minimising cross-border taxes and duties (when applicable).<\/p>\n\n\n\n

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\u201cIf I\u2019m completely honest, though, the deciding factor that sold us on ShipBob was price. International fulfilment can be incredibly expensive, but ShipBob was cheaper than our old provider. <\/p>\n\n\n\n

Their New Jersey-based facility in the Eastern region of the US is also more strategically located than our old provider\u2019s warehouse, so it was cheaper to ship inventory to.\u201d <\/p>\nJohn Greenhalgh, Co-Founder of A Year of Dates<\/a><\/cite><\/blockquote>\n\n\n\n

Additionally, ShipBob offers a Delivered Duty Paid (DDP) solution to help provide a seamless international shipping experience. Without DDP, consumers in many countries face surprise fees, long delivery times and delays at customs. ShipBob\u2019s DDP solution eliminates these post-purchase issues for a more streamlined approach to international fulfilment<\/a>, while reducing customer service inquiries.<\/p>\n\n\n\n

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\u201cWe definitely saw advantages in the number of ShipBob\u2019s international locations and the various features associated with being a global company. We have DDP shipping enabled for all of our international orders \u2013 that\u2019s currently one of our favorite features. <\/p>\n\n\n\n

We now have peace of mind that we can actually get things sent and delivered worldwide without having to worry about duties. People will reach out and say \u201cWow, that\u2019s already done?\u201d And we tell them, \u201cYep, it\u2019s done.\u201d<\/p>\nBen Jablow, VP, Alliances at Postal<\/a><\/cite><\/blockquote>\n\n\n\n

No matter which location(s) you choose to store inventory in, you get access to real-time inventory<\/a>, fulfilment, and shipping data using ShipBob’s fulfilment platform.<\/p>\n\n\n\n


Expand your reach with omnichannel fulfilment<\/h3>\n\n\n\n

No matter which platforms your customers are shopping on, ShipBob can help you meet them there. ShipBob’s B2B fulfilment and omnichannel fulfilment<\/a> capabilities help you delight your customers and retail partners. Brands can use ShipBob EDI connection to automate B2B fulfilment to over 100 retailers. <\/p>\n\n\n\n

ShipBob automates the entire process of receiving and processing orders and getting them to the fulfilment queue soon after orders are placed on any of your sales channels. <\/p>\n\n\n\n

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\u201cLogistics is something you never think about until it stops working, and we\u2019ve never come to that point with ShipBob. Everything just works. We are super happy with ShipBob and very impressed by how well they\u2019ve pumped out our large volume of orders.”<\/p>\nSergio Tache, CEO of Dossier<\/a><\/cite><\/blockquote>\n\n\n\n

Customise your orders for brand distinction<\/h3>\n\n\n\n

The only time you get a 100% open rate is at unboxing. With ShipBob’s Customisation Suite<\/a>, you can make a greater impression and encourage customers to make repeat purchases. <\/p>\n\n\n\n

With premium gift notes, customisable marketing inserts, kitting, branded packaging, and more, you can enhance customer satisfaction and boost customer loyalty. <\/p>\n\n\n\n

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Utilise ShipBob WMS for in-house fulfilment<\/h3>\n\n\n\n

If you fulfil orders from your own warehouse, you need a powerful warehouse management system (WMS) to help you effectively manage inventory orders and create streamlined warehouse operations. Brands can leverage ShipBob’s proprietary WMS in their own facility to boost productivity, improve accuracy, and grow their brand. <\/p>\n\n\n\n

Learn how Bunker Branding<\/a> uses ShipBob WMS in their own facility. <\/p>\n\n\n\n

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