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. Carriage Paid To (CPT)

    A commercial term denoting that the seller delivers the goods ...
Related Articles
  1. Markets

    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. Markets

    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

    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 ...
  4. Is It Time To Short This Industry Favorite?

    A combination of capacity growth, higher fuel prices and worries about the health of the global economy have sent airline stocks skidding this year. The US Global Jets ETF (NYSE:JETS) is down ...
  5. One Airline Ready To Fly Higher And One Not Cleared For Takeoff

    A combination of capacity growth, higher fuel prices and worries about the health of the global economy have sent airline stocks skidding this year. The US Global Jets ETF (NYSE:JETS) is down ...
  6. Markets

    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.
  7. Personal Finance

    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.
  8. Personal Finance

    The Ins And Outs Of Seller-Financed Real Estate Deals

    There's more than one way to buy or sell a house. Seller financing presents yet another unique option.
  9. Markets

    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.
  10. Insights

    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.
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. Is there a way to insure delivery duty paid?

    Learn about the relationship between insurance and delivery duty paid (DDP), and find out how DDP compares with other Incoterms. Read Answer >>
  4. 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 >>
  5. What is the difference between CIF and an incoterm?

    Learn the difference between CIF and an Incoterm. CIF is one of the 12 Incoterm established in 1936 by the International ... Read Answer >>
  6. 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 >>
Hot Definitions
  1. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  2. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  3. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  4. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
  5. Weighted Average Life - WAL

    The average number of years for which each dollar of unpaid principal on a loan or mortgage remains outstanding. Once calculated, ...
  6. Real Rate Of Return

    The annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other ...
Trading Center