FCA vs FOB Shipping Terms: Key Differences & Cost Impacts
FCA (Free Carrier) means the seller hands the goods to the buyer’s chosen carrier at a named place—seller clears export, buyer takes over from that point. FOB (Free On Board) applies only to sea freight; risk shifts once cargo crosses the ship’s rail at the named port of loading.
Buyers juggling ocean and multimodal quotes often glance past the fine print and assume “FCA port” equals “FOB port.” The difference surfaces weeks later when an FCA truck-to-rail leg triggers unexpected terminal fees, while FOB port handling stays bundled in the freight rate.
Key Differences
FCA suits containers, air, or road freight; delivery completes inland or at a terminal. FOB is strictly vessel-bound; delivery finishes only when goods are on board. Export clearance sits with seller under both, but FCA can push terminal handling onto the buyer earlier.
Which One Should You Choose?
Pick FCA if you control inland legs or ship containers that need a CY handoff. Choose FOB when you want the seller to absorb all port charges up to the ship’s side—ideal for break-bulk or bulk cargo on conventional vessels.
Does FCA cover import clearance?
No—buyer handles import duties and customs at destination.
Can FOB be used for air freight?
No; FOB is sea-only. Air shipments default to FCA.
Who pays terminal handling under FCA?
Usually the buyer unless the named place is the seller’s premises.