FCA (Free Carrier) is an Incoterms rule in which the seller hands the goods to the buyer’s carrier at a named place. The seller clears the goods for export, and risk passes to the buyer at delivery. FCA works for any mode of transport, including ocean shipments of machinery.
How FCA Works
The named place decides who loads. At the seller’s premises, the seller loads the goods onto the buyer’s truck.
At another place, such as a port terminal, the seller brings the goods on its own truck, ready for unloading. The buyer’s carrier unloads them and takes over from there. For example, a seller could sell a wheel loader FCA Port of Savannah and deliver it to the RoRo terminal.
The buyer then books the vessel, for example to Santos, and pays the ocean freight and any insurance. The parties can also agree that the carrier will issue an on board Bill of Lading to the seller. This option helps when a letter of credit asks for that document.
Why FCA Matters for Heavy Equipment Shipping
FCA fits machinery that is handed to the carrier before it is loaded on a vessel. RoRo units, Flat Racks and containers usually reach the terminal well before sailing, so risk moves at the gate. The seller still handles export clearance, which is often simpler for a local company.
FCA at the seller’s yard also settles the loading question that EXW (Ex Works) leaves open. Buyers can set up FCA purchases through APC’s equipment sourcing and procurement service and plan the ocean leg at the same time.
| Item | Under FCA |
|---|---|
| Delivery | To the buyer’s carrier at the named place |
| Loading at the seller’s premises | Seller |
| Unloading at another named place | Buyer |
| Export clearance | Seller |
| Main carriage and insurance | Buyer |
| Import clearance and duties | Buyer |
Common Mistakes With FCA
- Writing only a city name, such as FCA Houston, without the exact terminal or address.
- Using FOB (Free on Board) for a machine delivered to a container or RoRo terminal well before loading.
- Not agreeing who unloads the machine at a terminal that is not the seller’s yard.
- Forgetting to ask for an on board Bill of Lading when a letter of credit needs one.
- Leaving the buyer’s carrier details out of the sales contract, which delays the handover.
FAQ
Buying a machine FCA and need the ocean leg booked? Get a shipping quote from the named place to your port.
