FCA (Free Carrier)

Amazon & D2C glossary · Harpy Media

FCA (Free Carrier) is an Incoterm — a standard shipping-negotiation shorthand — defining where the seller’s responsibility ends: when goods are handed to the buyer’s nominated carrier at an agreed point (the seller’s premises or another named location), cleared for export. After that point, cost and risk belong to the buyer.

What is FCA?

FCA (Free Carrier) is an Incoterm — a standard shipping-negotiation shorthand — defining where the seller’s responsibility ends: when goods are handed to the buyer’s nominated carrier at an agreed point (the seller’s premises or another named location), cleared for export. After that point, cost and risk belong to the buyer.

Where FOB historically suited sea freight’s port ritual, FCA is the modern default for container shipments and air freight — the term that matches how goods actually move now. Choosing between them is a liability question: the gap between “handed to carrier” and “loaded on vessel” is where uninsured losses live.

FCA versus FOB: the difference that costs money

Under FOB, the seller’s risk ends when goods are on board the vessel at the origin port — meaning everything between factory and vessel (inland haulage, terminal handling, port delays) stays the seller’s problem. Under FCA, risk ends earlier: at handover to the carrier. For containerised freight, that earlier handover is the modern reality — containers are typically handed to carriers at inland terminals, and FOB’s “on board” moment is sometimes never cleanly reached (containers can wait days for vessel space). The practical consequence: an FOB deal on a container that sits at port carries risks the seller may not realise they retained — and claims disputes get expensive when the damage happens in the gap nobody priced.

Choosing terms deliberately

The decision inputs: who has the better freight rates and insurance (often the buyer, at scale), who is the actual importer of record and therefore exposed to duties and customs (an FCA handover often pairs cleanly with the buyer’s import arrangements), who controls the carrier relationship (your nominated forwarder under FCA versus buyer’s). The discipline that prevents costly surprises: one term, consistently applied across the PO, invoice, and freight paperwork — mismatched Incoterms across documents are how liability disputes begin — and the term written into the actual purchase order, not just discussed over chat. FCA is usually right for containers and air; FOB survives where genuine breakbulk or port-loading risk exists. What’s wrong is defaulting without deciding.

In practice

A brand’s supplier quotes FOB port, but their forwarder collects containers from the factory’s inland depot. Two containers are damaged in the transfer between depot and port — and the insurance question goes to court because the paperwork says FOB (seller responsible until on board) while the operational reality was FCA (handover at depot). Months of friction, one claim, a supplier relationship strained. The next contract: FCA named clearly, with the handover point spelled out as ‘seller’s premises’ and insurance arranged from that instant.

How Harpy Media helps

Incoterm strategy — matching terms to actual freight flows, insurance, and import arrangements — is part of our landed-cost and sourcing work.

FCA FAQ

What is FCA?

Free Carrier — an Incoterm: the seller delivers goods, export-cleared, to the buyer’s nominated carrier at a named point; cost and risk transfer there.

FCA or FOB — which should I use?

FCA usually fits modern container and air freight; FOB fits where genuine port-loading risk exists. Match the term to the actual journey, then document it consistently.

Why does the choice matter?

Because the gap between handover and vessel loading is where losses happen uninsured — the term decides who owns that gap.