Free Carrier - FCA

Loading the player...

What is a 'Free Carrier - FCA'

A free carrier (FCA) is a trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. Costs for transportation and risk of loss transfer to the buyer after delivery to the carrier.

When used in trade terms, the word "free" means the seller has an obligation to deliver goods to a named place for transfer to a carrier.

BREAKING DOWN 'Free Carrier - FCA'

Contracts involving international transportation often contain abbreviated trade terms that describe matters such as the time and place of delivery and payment, when the risk of loss shifts from the seller to the buyer, and who pays the costs of freight and insurance.

The most commonly known trade terms are Incoterms, which are published by the International Chamber of Commerce (ICC). These are often identical in form to domestic terms, such as the American Uniform Commercial Code, but have different meanings. As a result, parties to a contract must expressly indicate the governing law of their terms.

It's important to realize that because this is a legal term, its exact definition is much more complicated and differs by country. It is recommened that you contact an international trade lawyer before using any trade term.

RELATED TERMS
  1. Free On Board - FOB

    A trade term requiring the seller to deliver goods on board a ...
  2. Free Alongside - FAS

    A trade term requiring the seller to deliver goods to a named ...
  3. Delivered Ex Ship - DES

    A trade term requiring the seller to deliver goods to a buyer ...
  4. Common Carrier

    A commercial entity that gets paid to transport goods or people. ...
  5. Cost and Freight - CFR

    A trade term requiring the seller to arrange for the carriage ...
  6. Private Carrier

    A company that owns the vehicles used to transport its own goods. ...
Related Articles
  1. Investing

    What does Free Carrier Mean?

    Free carrier is a trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. Costs for transportation and risk of loss transfer ...
  2. Investing

    Cost and Freight (CFR)

    Cost and freight, called CFR, is a trade term between a buyer and seller. CFR requires the seller to arrange for the transport of goods by sea to the required port. It also requires the seller ...
  3. Investing

    Ex Works (EXW)

    Ex Works, or EXW, is an international legal trade term specifying that the seller is responsible to make his goods ready for pick-up at his place of business.
  4. Budgeting

    How To Save On Your Cell Phone Bill

    Mobile phones are now a way of life, but you shouldn't be paying more than $100 a month for your phone. Here are a host of ways to save.
  5. Investing

    What does DDP Mean?

    Delivery duty paid (DDP) is a shipping term specifying that the seller is responsible for all costs associated with delivery of the goods to the buyer. It is usually used when goods are exported ...
  6. Home & Auto

    Ins And Outs Of Seller-Financed Real Estate Deals

    Seller financing works like this: Instead of a buyer receiving a loan from a bank, the person selling the house lends the buyer the money for the purchase.
  7. Stock Analysis

    US Telecom Price War: T-Mobile Vs. Verizon Vs. AT&T (VZ, T)

    Find out how T-Mobile, Verizon and AT&T are waging an intense price war among mobile network providers and why investors are coming up short.
  8. Economics

    Explaining Cost, Insurance and Freight (CIF)

    Cost, Insurance and Freight, or CIF, is a trade term that means the seller must pay the costs needed to transport goods to a port of destination.
  9. Professionals

    Terminating a Forward Contract Prior to Expiration

    CFA Level 1 - Terminating a Forward Contract Prior to Expiration. Learn how to terminate your position in a forward contract through use of an offset. Discusses default risk upon terminating ...
  10. Professionals

    Forward Markets and Contracts: Settlement Procedures

    CFA Level 1 - Forward Markets and Contracts: Settlement Procedures. Learn the differences between being long or short in a forward contract. Also contrasts how physical and cash deliveries are ...
RELATED FAQS
  1. What are the differences between Ex Works (EXW) and Free On Board (FOB)?

    Learn about Ex Works and Free on Board, the main difference between these Incoterms, and the responsibilities of buyers and ... Read Answer >>
  2. What does 'Incoterms' mean in relation to Ex Works (EXW) trades?

    Learn about Incoterms rules and ex works trade agreements and the obligations of buyers and sellers under the Incoterms rules ... Read Answer >>
  3. What's the difference between cash-on-delivery differ and delivery against payment?

    Find out more about cash on delivery and delivery versus payment transactions and the difference between these two types ... Read Answer >>
  4. What is the distinction between Free on Board (FOB) shipping point and destination?

    Find out more about free on board shipping point and free on board destination and the difference between these international ... Read Answer >>
  5. Why is a Free on Board (FOB) designation important for freight transportation?

    Find out more about free on board destination, the variations of FOB destination and why FOB destination is important for ... Read Answer >>
  6. Where can I find the terms governing my CIF in different ports of call?

    Creating standard terms for international trade was the main reason for the establishment of CIF and other Incoterms. Thus, ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center