FCA at a glance
Under FCA, the seller delivers the goods to the carrier or another person nominated by the buyer at the named place. Risk transfers at that delivery point.
Shipment
- Named location
- Named place (carrier or another person nominated by the buyer)
- Delivery point
- When goods are delivered to the carrier/nominated person at the named place
- Risk transfer
- When goods are delivered to the carrier/nominated person at the named place
Responsibilities
- Main carriage
- Buyer arranges and pays
- Export clearance
- Seller
- Import clearance
- Buyer
- Insurance
- Neither party is required by FCA to contract for cargo insurance.
Contract
- Common comparison
- Compare with FOBFOB requires on-board delivery and is limited to sea/inland waterway.
Illustrative notation: FCA Port of Houston container terminal, Incoterms® 2020. Customize and copy below ->
Responsibility journey
- Delivery point
- When goods are delivered to the carrier/nominated person at the named place
- Risk transfer
- When goods are delivered to the carrier/nominated person at the named place
Seller / exporter
- Cost
- Seller
Origin pickup
- Cost
- Seller
Export clearance
- Cost
- Seller
- Export
- Seller
Origin terminal
- Cost
- Buyer
- Handoff
- Delivery + risk transfer
Carrier handoff
- Cost
- Buyer
Main carriage
- Cost
- Buyer
Destination terminal
- Cost
- Buyer
Import clearance
- Cost
- Buyer
- Import
- Buyer
Final delivery
- Cost
- Buyer
Buyer / importer
- Cost
- Buyer
Who pays what under FCA?
FCA works for any transport mode and is often the practical alternative to FOB for containerized or multimodal cargo handed over before vessel loading.
Seller does
- Deliver to the buyer’s nominated carrier or person at the named place
- Complete export clearance
- Provide documents/information needed for the buyer to take the goods
Buyer does
- Nominate the carrier or receiving party
- Arrange and pay main carriage
- Handle import clearance and on-carriage
Not determined by the FCA rule alone
- Cargo insurance contract
- Payment terms or title transfer
When to use FCA
When FCA fits
- Containerized exports
- Multimodal moves where handoff occurs at a terminal or carrier depot before vessel loading
When to use FCA with caution
- Situations that truly require delivery on board a named vessel (consider FOB for non-container sea cargo)
FCA shipment example
An exporter delivers a sealed container to the ocean carrier’s terminal in Houston as named under FCA. Export clearance is completed by the seller. The buyer’s freight contract covers the ocean voyage and import formalities at destination. Risk transfers at the Houston handoff—not when the vessel sails or arrives.
Common mistakes
- Using FOB for container handoffs that occur before the goods are on board
- Leaving the named place vague so delivery timing is disputed
How do you write FCA in a contract?
Include the acronym, the exact named location, and the edition.
Contract notation builder
Build an illustrative line with the acronym, named place or port, and Incoterms® 2020. Parties must agree the exact location; this does not create a contract.
FCA Port of Houston container terminal, Incoterms® 2020Edition is fixed to Incoterms® 2020. Catalog example: FCA Port of Houston container terminal, Incoterms® 2020
Does FCA include insurance?
Neither party is required by FCA to contract for cargo insurance.
FCA compared with related terms
Use these comparisons when the shipment mode, handoff point, or insurance need does not match FCA.
FCA vs. FOB
FOB requires on-board delivery and is limited to sea/inland waterway.
FOB requires on-board delivery and is limited to sea/inland waterway.
Open FOB details ->FCA vs. EXW
EXW leaves export clearance with the buyer; FCA usually does not.
EXW leaves export clearance with the buyer; FCA usually does not.
Open EXW details ->FCA vs. CPT
CPT shifts main-carriage cost to the seller while risk still transfers at origin handoff.
CPT shifts main-carriage cost to the seller while risk still transfers at origin handoff.
Open CPT details ->
Frequently asked questions
Is FCA better than FOB for containers?
Often yes. When goods are handed to a carrier or terminal before they are on board, FCA Incoterms® 2020 usually matches operations more closely than FOB.
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Talk with a Crane trade or customs specialist about transport mode, handoff points, documentation, and clearance responsibilities. This guidance is educational and is not legal advice; the parties remain responsible for selecting contractual terms.
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Last reviewed July 30, 2026. Edition reference: Incoterms® 2020 (not a new calendar-year edition).