Free Carrier
What does FCA Mean in shipping terms The FCA Incoterm is an agreement that means “Free Carrier,” where the seller's obligations are to deliver the cargo to an agreed-upon port, known as the “Named Place.” The seller is responsible for exporting the shipment, and all steps before that.The INCOTERMS (International Commercial Terms) are a set of definitions of international trade terms, such as FOB, CFR and CIF, developed by the International Chamber of Commerce (ICC). It defines the trade contract responsibilities and liabilities between buyer and seller.the buyer
Under the Free Carrier, or FCA Incoterms® rule, the buyer is responsible for all freight costs.
Are FCA and EXW the same : Free Carrier, denoted as FCA, is slightly more comprehensive than EXW. Under the term, a seller is obligated to deliver the goods to a named location in the seller's country, such as a carrier or other place nominated by the buyer. This may be the seller's premises, a terminal, or any other agreed-upon location.
What are 11 Incoterms
There are 11 Incoterms in total, and they are divided into two categories: Incoterms for Any Mode of Transport: These include EXW (Ex Works), FCA (Free Carrier), CPT (Carriage Paid To), CIP (Carriage and Insurance Paid To), DAP (Delivered at Place), DPU (Delivered at Place Unloaded), and DDP (Delivered Duty Paid).
What replaced Incoterms 2010 : The rule known as DAT (Delivered At Terminal) under Incoterms 2010 has been renamed DPU (Delivered at Place Unloaded) under Incoterms 2020. This change is to reflect the reality that the place of delivery may not necessarily be a terminal.
What Is Free Carrier (FCA) Free carrier is a trade term dictating that a seller of goods is responsible for the delivery of those goods to a destination specified by the buyer. When used in trade, the word "free" means the seller has an obligation to deliver goods to a named place for transfer to a carrier.
The Buyer
The Buyer always pays for shipping, unless you have decided to offer free shipping on an item. The cost of shipping is added to the order during the checkout process, ensuring that the buyer sees the same item price regardless of where they are located.
Should I use EXW or FOB
Goods shipped EXW will usually be cheaper FOB since Free on Board would have the supplier bear the costs of transportation, handling, and customs clearance. EXW terms, however, are often riskier for the seller since they are responsible for the goods until they reach their destination.11 trade terms
How many Incoterms® are there to use in 2024 Incoterms® use in 2024 comprises 11 trade terms that define the specific obligations and responsibilities of buyers and sellers in international commercial transactions.Incoterm 18 (DDP, VAT Registration Scheme): Freight costs, customs clearance costs and taxes paid – the shipper pays freight and customs clearance. Taxes are paid either by the importer or by the shipper after registration in the UK.
Although the ICC recommends using Incoterms® 2020 beginning January 1, 2020, parties to a sales contract can agree to use any version of Incoterms after 2020. They need to clearly specify the chosen version of Incoterms being used (i.e., Incoterms® 2010, Incoterms® 2020, or any earlier version).
What is FCA in DHL : FCA – Free Carrier
FREE CARRIER (FCA) means that the seller delivers the goods to the buyer in one or other of two ways: First, when the named place is the seller's premises, the goods are delivered when they are loaded on the means of transport arranged by the buyer.
Who pays in FCA : the buyer
Under the Free Carrier, or FCA Incoterms® rule, the buyer is responsible for all freight costs.
Who pays for shipment
Once on the ship, the buyer is responsible financially for transportation costs, customs clearance, fees, and taxes. Conversely, with FOB destination, the seller pays the shipment cost and fees until the items reach their destination, such as the buyer's location.
Opt for in-store or pickup – Some stores will even offer same-day pickup at a local store, or free shipping to the store itself so you can swing by and pick up your order. It can help you avoid the lines and the shipping fees.Free On BoardFOB / Full name
FOB stands for “free on board” or “freight on board” and is a designation that is used to indicate when liability and ownership of goods is transferred from a seller to a buyer. Free on Board: Free on board indicates whether the seller or the buyer is liable for goods that are damaged or destroyed during shipping.
Is FOB shipping cheaper : Buyers generally consider FOB agreements to be cheaper and more cost-effective. That's because they have more control over choosing shippers and insurance limits. CIF contracts, on the other hand, can be more expensive. Since the seller has more control, they may opt for a preferred shipper who may be more costly.