What is Free Carrier?
Free Carrier (FCA) is an Incoterms 2020 rule under which the seller delivers the goods, cleared for export, to the carrier or another person nominated by the buyer at a named place. It can be used for any mode of transport, including multimodal container shipments. If the named place is the seller's premises, delivery occurs when the goods are loaded onto the buyer's collecting vehicle; at any other place, delivery occurs when the goods, still on the seller's vehicle and ready for unloading, are placed at the disposal of the buyer's carrier. Incoterms 2020 added an option allowing the parties to agree that the buyer will instruct its carrier to issue an on-board bill of lading to the seller after loading, which helps letter of credit transactions. The 2020 edition also expressly allows either party to use its own means of transport.
Why it matters for forwarders
FCA is the rule ICC recommends for most containerised trade in place of FOB, because the seller's risk ends when the container is handed to the carrier rather than when it crosses onto a vessel days later. The named place must be precise, for example a specific CFS or terminal address, since it decides who pays for loading and who carries the risk in between. When a letter of credit requires an on-board bill of lading, the forwarder acting for the buyer needs instructions to issue it to the seller, but the carrier is not compelled to comply. Clarify who pays terminal handling at origin, since FCA does not answer that on its own and quotes often differ. The seller clears export, so the forwarder at origin must obtain the seller's export documents before the cut-off.