In shipping terms, what does the acronym FCA represent?

The acronym FCA stands for Free Carrier, which is a widely recognized term in international shipping and trade. This term is part of Incoterms, which are a set of international regulations developed by the International Chamber of Commerce to define the responsibilities of buyers and sellers in global commerce.

In the Free Carrier arrangement, the seller is responsible for delivering the goods, cleared for export, to a specified carrier or another party nominated by the buyer at a designated location. This means that the seller bears all costs and risks associated with transporting the goods to that point. Once the goods are delivered to the carrier, the responsibility shifts to the buyer, who then assumes the risk and cost associated with transportation, including any further shipping arrangements.

Understanding the term Free Carrier is crucial for businesses engaged in international trade, as it helps clarify the division of responsibilities and costs between sellers and buyers. This clarity is critical to ensuring smooth transactions and helps both parties manage their logistics efficiently.