Canada announces an additional $125 billion in tariffs; comments due 4/2 (Updated: 3/14)

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Understanding Free Carrier (FCA) Shipping Terms

What is FCA Shipping?

Free Carrier, or FCA, is one of those shipping terms you hear tossed around a lot in the logistics world. Simply put, it’s an Incoterm that specifies that the seller hands over the goods to a carrier appointed by the buyer at the seller’s premises or another named place. It’s a pretty straightforward term, but let’s break it down a bit more.

How Does FCA Work?

When you choose FCA, the seller is responsible for clearing the goods for export and delivering them to the carrier or another party nominated by the buyer. Once the goods are handed over, the risk transfers to the buyer. This means if anything happens to the goods after this point, it’s the buyer’s responsibility. It’s like a passing of the baton in a relay race – once you’ve handed it over, it’s no longer your concern.

Why Choose FCA?

FCA is favored because it offers flexibility. The seller can deliver the goods to a location that suits both parties, and the buyer has control over the transportation process from that point on. It’s a win-win situation, especially when the buyer wants to manage transportation logistics directly.