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Free Carrier (FCA) is an Incoterm in international trade where the seller delivers goods to a carrier or another party designated by the buyer at a specified location, transferring responsibility and risk once the goods are handed over.
FCA outlines the division of responsibility between the seller and the buyer. The seller is responsible for delivering the goods to the agreed location, usually a transport hub or carrier, and covers the cost of export duties and transportation until that point. Once the goods are handed over, the buyer assumes responsibility for the shipment, including transportation and risk during transit.
FCA works by transferring responsibility for the shipment from the seller to the buyer once the goods are delivered to the agreed carrier or location. This term benefits your business by providing flexibility in shipping arrangements, lowering your transportation costs, and simplifying the risk transfer process.
By using FCA, you can ensure smoother logistics, faster transit, and better control over your shipping arrangements.
Buske Logistics is a Top 40 3PL with over 35 warehouses across North America, specializing in warehousing, transportation, and value-added services. We provide tailored logistics solutions serving major Fortune 500 companies.
FCA is important because it clarifies the responsibility and risk transfer between the buyer and seller, offering flexibility in how goods are transported. It allows the buyer to choose the carrier or transport method that best suits their needs, and it minimizes the seller's involvement in the later stages of delivery.
For example, a seller may deliver goods to a designated port or warehouse, while the buyer handles the transport further to their final destination. This arrangement helps streamline logistics, making it easier for businesses to manage international shipments and optimize supply chain efficiency.
