FCA - Free CarrierBack to Logistics Insight Hub index
Business quick take
FCA (Free Carrier) is an Incoterm where the seller delivers the goods, cleared for export, to a carrier chosen by the buyer at a specified location. It signifies a precise point within the delivery process where the risks and costs shift from the seller to the buyer.
Businesses looking for a balanced distribution of shipping responsibilities often opt for FCA. It's suitable for multimodal transport and is often chosen when buyers want to control freight charges and the choice of the carrier.
- Evaluate the logistics capabilities at the specified delivery location.
- Understand the responsibilities for arranging transport and insurance from the point of delivery.
- Consider the legal and administrative aspects of customs clearance at the origin.
Companies often use FCA to gain more control over the initial leg of the shipping journey. They may negotiate better terms with carriers and manage costs effectively.
FCA can provide cost efficiencies and better control over the freight process, benefiting buyers who have specific preferences for carriers or those looking to consolidate freight.
FCA is particularly effective for businesses that prefer to take charge of freight arrangements beyond the initial point of delivery. It allows for better control over the costs and logistics of transporting goods from a specified location, which is pivotal in the seller's country.
Consider FCA if you are looking to:
- Consolidate shipments for cost savings.
- Manage logistics directly with carriers.
- Optimize your supply chain for better control from the point of export.
In-depth considerations include:
- Legal Requirements: Ensure compliance with export documentation and customs clearance, which remain the seller's responsibility.
- Transportation Costs: Benchmarking costs when handling transportation independently versus when included by the seller.
- Risk Transfer Point: Understanding that risk transfers to the buyer once the seller delivers the goods to the nominated carrier, requiring a clear insurance strategy from that point onward.
Organizations might use FCA when they have established partnerships with carriers, allowing them to negotiate favorable terms. This term is also beneficial for buyers when they purchase goods from multiple sellers and wish to consolidate shipments to reduce costs.
Terminal49 supports businesses operating under FCA by offering:
- Tracking Capabilities: Providing visibility from the point of delivery to the final destination.
- Customs Clearance Support: Assisting with export documentation to ensure compliance and smooth transition at the point of origin.
- Cost Analysis Tools: Enabling businesses to compare various shipping options and costs efficiently.