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Freight glossary

FCA: Free Carrier Meaning in Shipping

FCA (Free Carrier) is an Incoterms rule under which the seller delivers goods, cleared for export, to the carrier or other party the buyer names at a named place, and risk passes to the buyer at that handover.

In plain English

Under FCA the seller handles export clearance and delivers the goods to the buyer’s carrier. The named place decides who loads: if it is the seller’s premises, the seller loads the truck; if it is somewhere else, such as a terminal or the carrier’s depot, the goods are handed over ready for the carrier to unload.

FCA works for any mode of transport and is often the better choice than FOB for containers, because the handover happens on land at a place both sides can control. Incoterms 2020 also lets the buyer require its carrier to issue an on-board bill of lading to the seller, which helps with letter of credit sales.

Why it matters when you ship

FCA is a good middle ground. The buyer chooses the carrier and pays for the main transport, while the seller deals with the export formalities in its own country.

Always name the exact handover place. “FCA seller’s warehouse” and “FCA Port of Houston terminal” split loading duties differently.

Example

“FCA Chicago, Illinois, Incoterms 2020” means the seller loads the buyer’s truck in Chicago and clears the goods for export. From that moment the buyer carries the risk and pays the freight.

FCA (Free Carrier): common questions

Who pays freight on FCA terms?

The buyer pays for the main transport from the named place. The seller pays for getting the goods to that place and for export clearance.

When does risk pass under FCA?

When the goods are delivered to the buyer’s carrier at the named place, loaded onto the vehicle if the place is the seller’s premises.

Cite this page

Cite as: Transportli, “FCA: Free Carrier Meaning in Shipping”, https://transportli.com/glossary/fca/, updated November 11, 2026.

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