Incoterms, or International Commercial Terms, were created by the International Chamber of Commerce (ICC). Let’s talk specifically about the FCA Incoterm and what it might mean for you.
What Does FCA Mean?
FCA stands for “Free Carrier.” Under this Incoterm, the seller delivers goods to a named location, such as a terminal or port. From that point forward, the buyer is responsible for arranging all other transportation.
Although this may seem like a very small difference between the previous Incoterm, EXW, it may offer buyers a slight advantage. For example, rather than having to arrange transportation to the port in a region they might not be familiar with, buyers can choose to let the seller make those arrangements under the FCA Incoterm.
Additionally, if the seller makes frequent deliveries to a nearby port, they may be willing to offer the buyer a low price for this service. However, if the buyer arranged for a dedicated delivery under the EXW Incoterm, it might cost significantly more.