Incoterms 2020
FOB vs FCA
Compare Free On Board and Free Carrier side by side: who pays freight, where risk transfers, and who clears customs.
| Field | FOB | FCA |
|---|---|---|
| Applies to | Sea and inland waterway only | Any mode, including multimodal |
| Risk transfers to buyer | When the goods are on board the vessel at the named port of shipment. | When the goods are handed to the carrier nominated by the buyer, or loaded onto the buyer's vehicle if delivery is at the seller's premises. |
| Main carriage paid by | Buyer | Buyer |
| Insurance | No party is obliged to insure. | No party is obliged to insure. The buyer should arrange cover for the main carriage. |
| Export clearance | Seller | Seller |
| Import clearance and duties | Buyer | Buyer |
| Seller handles | Deliver the goods on board the vessel, cleared for export. | Deliver the goods, cleared for export, to the buyer’s carrier at the named place. |
| Buyer handles | Ocean freight, insurance, import clearance, unloading, and delivery. | Main carriage, insurance, import clearance, and onward delivery. |
| Best for | Traditional non-containerized sea trade with a clear on-board handoff. For containers, FCA is technically more appropriate. | Buyers who arrange their own freight forwarder. The modern replacement for FOB when goods are containerized. |
Fields that differ are highlighted in teal. General guidance only, not legal advice. Your sales contract governs. Based on Incoterms 2020.
FOB vs FCA questions
Pick the right term, then track what it costs
Cargizon tracks every shipment and checks each freight invoice against your rate card, so wrong charges get flagged before you pay. Start free.