FCA (Free Carrier) Explained
The ICC's own recommended term for air and multimodal cargo — risk transfers at delivery to the carrier, not at a port that doesn't exist on an air shipment.
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ICC's recommended term for air freight
Named place
Where risk transfers to the buyer
Seller
Responsible for export clearance
2020
Incoterms edition adding on-board B/L option
Risk transfers at the carrier, not at a vessel that isn't there
Under FCA (Free Carrier), the seller clears the goods for export and delivers them to a carrier or another party nominated by the buyer, at a named place — the seller's own premises, or another location such as the origin airport's cargo terminal. Risk transfers to the buyer at that handover, not at a port of loading that has no equivalent in an air shipment's routing. This is exactly the gap that makes FOB, a sea-freight-only term, meaningless when applied to an air waybill.
The named place matters for who's responsible for loading: if delivery happens at the seller's own premises, the seller is responsible for loading the goods onto the collecting vehicle; if delivery happens at any other named place (the airport cargo terminal, for instance), the seller is not responsible for unloading, and risk transfers once the goods are made available on the seller's arriving means of transport.
When to use it: FCA is the ICC's own recommended term for containerized, air, and multimodal cargo generally, because it defines a real, physical handover point in every one of those shipping methods. It's the correct default whenever a shipper is tempted to reach for FOB out of sea-freight habit on an air shipment.
ICC's Own Recommendation
FCA is the ICC's recommended Incoterm for air and multimodal cargo, not FOB
FOB defines risk transfer at a vessel's rail — a point that doesn't exist in an air shipment's handling chain. FCA defines it at delivery to the carrier at a named place, which does.
See why FOB doesn't actually work for air freight →Source: ICC Incoterms 2020 rules — 7 rules for any mode of transport including FCA; 4 rules restricted to sea/inland waterway including FOB.
Worked example
FCA Kuala Lumpur Airport, Toronto-bound
The same corridor as our EXW example — Kuala Lumpur to Toronto on Emirates SkyCargo's KUL–DXB–YYZ routing — priced under FCA instead, with the named place set at KUL airport's cargo terminal rather than the seller's own factory.
The seller arranges Malaysia's K2 Declaration through an RMCD-licensed agent and delivers the goods to UAL, acting as the buyer's nominated carrier, at KUL airport's cargo terminal. Risk transfers to the buyer at that handover — a real, physical point in this shipment's actual routing, unlike FOB's vessel-loading point, which has no equivalent here.
From that handover onward, the buyer's side takes over: the AWB and main carriage booking on the Emirates KUL–DXB–YYZ routing, insurance if the buyer chooses to carry any, and CBSA clearance on arrival at Toronto Pearson. Because the seller — not the buyer — handled Malaysia's own export clearance, this avoids the EXW gap where a foreign buyer has to line up a Malaysia-licensed agent from scratch.
What UAL handles for you
We act as the nominated carrier at the named place under FCA terms, taking custody of cargo at KUL airport's cargo terminal (or the seller's own premises, if that's the named place agreed) and issuing the AWB from that handover forward. We confirm exactly where the named place is before booking, since that single detail determines who's responsible for loading and exactly when risk transfers.
Frequently asked questions
Because FCA defines risk transfer at delivery to a carrier at a named place — a point that exists in every transport mode, including air. FOB defines it at loading onto a vessel at a named port, which simply doesn't exist in an air shipment's routing.
Related
Incoterms 2020 rules, FCA obligations A1–A10/B1–B10: International Chamber of Commerce (ICC), Incoterms 2020. Last verified: August 2026.
Air Freight Fundamentals
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