FCA Incoterms Explained + 5 Easy Tips For Implementing

FCA Incoterms are like a pocketknife in your international trade toolbox—versatile, handy, and surprisingly sharp if you don’t handle them right.

If you’re a vessel agent, freight forwarder, or someone in the trenches of shipping logistics, chances are you’ve dealt with FCA. And if you’ve ever tried to explain it to someone who only knows FOB, you know the struggle. FCA (Free Carrier) sounds simple, but there are some hidden wrinkles that can make or break your deal if you don’t nail the handoff.

So let’s go over what it really means, how it works, and how to use it without losing your sanity (or money).

What does FCA mean in Incoterms?

FCA stands for Free Carrier. It’s part of the Incoterms rules published by the International Chamber of Commerce. It means the seller delivers the goods to a carrier or another person nominated by the buyer, at a specified location.

Sounds easy, right? Here’s where it gets tricky.

That “location” could be:

• The seller’s premises (like a warehouse or factory)
• A forwarder’s warehouse
• A terminal or transport hub

Where the goods are delivered determines who’s on the hook for loading. If it’s the seller’s place, the seller loads. If it’s anywhere else, loading is on the buyer.

FCA works for any transport mode—trucking, rail, sea, inland waterway, air, or all of the above. That’s what makes it a flexible rule in global trade. The key? Once the goods transfer to the first carrier, risk transfers to the buyer. From that point on, it’s the buyer’s risk, and they handle the rest of the shipping process.

Seller Responsibilities

When you’re the seller using FCA, your job is to get the goods to the named place of delivery and hand them off to the carrier selected by the buyer.

Here’s what that actually means:

• You’re responsible for loading if the handoff is happening at your warehouse. (And trust me, there’s no wiggle room here. If the truck shows up and you didn’t include loading in your plan, you’re either paying extra or holding up the shipment.)
• You’re on the hook for export packing and arranging local transport to get the goods from your facility to the carrier’s location if it’s not your site.
• You must complete export customs clearance and provide any needed export license.
• You’re handling the commercial invoice, packing list, and other documentation tasks for the export country.

And here’s where it bites a lot of folks: even if the buyer arranges the carrier, the seller remains liable until the goods are officially transferred at the agreed location. If there’s confusion or the carrier doesn’t show up, the seller is responsible for sorting it out.

That’s why the sales contract needs to be airtight.

Buyer Obligations

The buyer carries the baton the moment the goods pass to the carrier. But that moment? It has to be clear.

Here’s what the buyer responsibilities include:

• They arrange the carrier and coordinate the pickup.
• They cover the freight, main carriage, transportation and terminal charges, and import clearance once the goods are handed off.
• They’re paying any loading charges if the handoff isn’t happening at the seller’s premises.
• They need to be ready to pay taxes, duties, and handle all customs formalities in the import country.
• If a pre-shipment inspection is needed, it’s the buyer’s job to make it happen (unless otherwise agreed).

Here’s a tip: always confirm that your freight forwarder knows the exact named place of delivery. If they roll up to the wrong terminal or show up late, the seller isn’t liable—but everyone loses time and money.

FCA vs Other Incoterms: What Sets It Apart?

FCA gives you more control and fewer headaches than other shipping terms—if you understand the handoff.

Let’s compare it:

• EXW (Ex Works): The buyer does everything, including picking up at the supplier’s factory. No loading included. FCA is better when you don’t want the buyer to deal with export procedures.
• FAS (Free Alongside Ship): Works only for ocean freight. The seller delivers next to the ship, and that’s it. FCA can be used with any mode. 
• FOB (Freight on Board): The seller loads onto the ship, but FCA is better for container shipments because it handles pre-port stages better. 
• CFR (Cost & Freight): The seller pays for the transport, but risk transfers at the port. FCA lets the buyer control the freight and carrier choice. Read CFR (cost & freight) for a full breakdown.

Need a full view? Here’s our complete guide on Incoterms.

5 Tips on Using FCA

You can’t just slap “FCA” on a contract and call it a day. Here’s how to avoid the classic mistakes:

1. Lock Down the Location

Be ultra-specific with your named place of delivery. Include this in both the sales contract and any transport instructions. Use a full address, access notes, contact names, and hours of operation. For example, don’t just write “Houston terminal”—write “Gate 3, ABC Logistics Terminal, 1240 Port Rd, Houston, TX 77029, contact: Jane Doe, (555) 123-4567, Mon–Fri 8AM–4PM.”

2. Understand Who’s Loading

If it’s the seller’s place, the seller loads. Anywhere else? The carrier is responsible and it’s on the buyer. Don’t assume the trucker’s bringing a pallet jack or dock plate. Spell out who provides the equipment.

3. Get Export in Order

The seller is responsible for export customs clearance, which includes any required export license, pre-shipment inspection, and export and documentation tasks in the export country. Missing one form can cause a customs delay that ruins your timeline. Build in time for approvals if you need a license.

4. Ensure the Hand-Off

Double-check that the carrier your buyer arranges knows the details. They need to show up on time, know who to talk to, and have the right documents. Send a pre-alert with loading instructions, and don’t assume the forwarder passed along your notes.

5. Use It with Letters of Credit

FCA works well with credit payments, especially when a letter of credit (L/C) is involved. A letter of credit is a guarantee from the buyer’s bank that payment will be made once conditions are met—like submitting a Bill of Lading, commercial invoice, and other documents. Because FCA allows the seller to get a Bill of Lading after delivery to the carrier, it satisfies most L/C terms without requiring the seller to pay for freight or take on main carriage.

At the end of the day, FCA works best when everyone involved actually talks to each other. The moment assumptions replace communication, that’s when things fall apart.

Final Take on FCA Incoterms

FCA Incoterms can work in your favor when you want flexibility without taking on the whole shipping process. But there’s no autopilot. You need to manage handoffs, verify who’s responsible for loading, and lock in that named place of delivery.

With Base, vessel agents and freight teams can handle all the moving parts of FCA with more confidence. You can log every location detail, share export documents, manage pre-alerts, and tag responsible parties right inside the system. Instead of juggling spreadsheets and chasing email threads, you’ll have a single place where your whole team—and your clients—can stay on the same page.

Base makes the FCA shipping process clearer, faster, and way less frustrating for everyone involved.

Key Takeaways

• FCA (Free Carrier) gives the buyer control over the carrier, while the seller handles export steps.
• The seller remains liable until the goods are handed off at the named place of delivery.
• The buyer pays for the freight, transportation costs, import clearance, and terminal charges after handoff.
• It works across all transport modes, and it’s great for credit payments like letters of credit.
• Misunderstandings about who loads, where, and when are the biggest cause of FCA mistakes.

Frequently Asked Questions