FCA and FOB are often treated as interchangeable seller-to-carrier delivery terms, but they are designed for different transport situations. The distinction matters most for containerised cargo, where the seller commonly hands the goods to a carrier before they reach the vessel.
Use the transport mode as the first filter
FCA can be used for any mode of transport, including road, air, rail, multimodal and containerised sea shipments. FOB is restricted to sea or inland-waterway transport and delivery occurs only when the goods are on board the named vessel at the port of shipment.
For conventional bulk, breakbulk or other cargo delivered directly alongside and then onto the vessel, FOB may reflect the physical operation. For containers handed to a terminal or carrier before loading, FCA usually follows the actual custody chain more closely.
Locate the exact delivery and risk-transfer point
Under FCA, delivery and risk transfer occur when the seller hands the goods to the carrier or another person nominated by the buyer at the named place. The named place could be the seller's premises, a terminal or another agreed location, so the contract should state it precisely.
Under FOB, delivery and risk transfer occur when the goods are placed on board the vessel nominated by the buyer. The seller therefore carries the pre-shipment risk until vessel loading, even if the container left the seller's control earlier.
Check who controls the carrier and transport document
With either rule, the buyer normally arranges the main carriage. Under FCA, the seller can face a documentary issue when payment requires an on-board bill of lading. Incoterms® 2020 provides a mechanism through which the parties may agree that the buyer instructs the carrier to issue an on-board bill of lading to the seller after loading.
Do not select FOB merely to obtain an on-board document. Confirm the carrier's process, the letter-of-credit wording and the agreed document flow before fixing the rule.
Write the rule and named place correctly
A usable contract states the rule, exact place and version—for example, “FCA Seller Warehouse, Via Example 10, Lugano, Switzerland, Incoterms® 2020” or “FOB Port of Genoa, named loading terminal, Incoterms® 2020”. Repeat the same wording in the quotation, purchase order, confirmation and commercial invoice.
Quick control
Mini-checklist
- Confirm whether the cargo is containerised or delivered directly to the vessel
- Map the physical handover to the contractual delivery point
- Name the place or port precisely
- Confirm who arranges main carriage and export clearance
- Align any on-board bill-of-lading requirement before shipment
Frequently asked questions
What professionals ask
Is FCA better than FOB for container shipping?
FCA is often the more accurate choice because containers are commonly handed to a carrier or terminal before vessel loading. The final choice must still reflect the actual handover, contract and documentary requirements.
Who pays freight under FCA and FOB?
The buyer normally contracts and pays for the main carriage under both rules. The seller bears the costs needed to deliver the goods to the named FCA place or on board the vessel under FOB.
When does risk transfer under FCA versus FOB?
Under FCA, risk transfers at delivery to the buyer's nominated carrier or person at the named place. Under FOB, it transfers when the goods are on board the nominated vessel at the named port of shipment.
Authoritative references
Further reading
This guide provides general operational information and does not constitute legal, customs, tax or regulatory advice. Requirements vary by transaction and jurisdiction; obtain specialist advice where appropriate.