Shippers frequently ask whether to use FOB or FCA for a given shipment — the honest answer depends almost entirely on whether you're shipping traditional vessel cargo or containers.
| FOB — Free on Board | FCA — Free Carrier | |
|---|---|---|
| Transport mode | Sea/inland waterway only | Any mode |
| Risk transfers | On board the vessel at the port of shipment | When goods are delivered to the named carrier or place |
FOB requires an actual vessel and transfers risk only once goods are physically on board — appropriate for break-bulk or bulk sea cargo. FCA transfers risk earlier, at the point goods are handed to the buyer's nominated carrier, and works for containerised sea freight, air freight, road freight or any multimodal combination — which is why most trade bodies now recommend FCA as the more broadly applicable, unambiguous term for modern container shipping.
You're shipping traditional bulk or break-bulk cargo loaded directly onto a vessel, where 'on board' is a clear, verifiable event.
You're shipping containers, air freight, or anything that doesn't involve goods being loaded directly onto a vessel by the seller.
FCA is generally recommended for containerised cargo, since containers are typically handed to the carrier at a terminal or container yard well before vessel loading — using FOB in this case creates ambiguity about exactly when risk transfers.
Not inherently — the choice between FOB and FCA is about risk-transfer clarity and transport-mode flexibility, not cost. Actual pricing depends on the specific freight and insurance arrangements agreed between buyer and seller.
Yes, FOB remains a valid Incoterm for any sea shipment including containers — it's just less precise about the actual risk-transfer moment for container cargo. Many contracts still use FOB out of habit even where FCA would be the technically better fit.
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