Detailed explanation of international trade terms "FCA" and "FOB"
FOB and FCA are two commonly used trade terms in international trade, and are commonly used transaction methods in import and export operations. Some importers have difficulty controlling the ability of exporting country freight forwarders to operate and charge fees, so they choose FOB and FCA. This not only allows them to have a clear understanding of the cost details they need to bear and choose a trusted freight forwarder and shipping company, but also enables them to more effectively control cargo rights.
So, next, we will provide a detailed introduction to the differences and similarities between these two trade terms:
FCA (Free Carrier) refers to the seller delivering goods to a designated carrier or logistics company, and the delivery location can be the seller's warehouse, dock, or other location. Once the seller hands over the goods to the carrier or logistics company, the responsibility shifts to the buyer, who needs to bear the transportation and insurance costs.
FOB (Free on Board) refers to the seller loading the goods onto a vessel and placing them at a designated port, with the delivery location being the seller's designated loading port. Once the goods are loaded onto the vessel, the responsibility shifts to the buyer, who is responsible for the transportation and insurance costs. (FOB is usually called offshore price, followed by the port of origin)
Common points between FCA and FOB:
The commonality between FCA and FOB is that the price composition does not include shipping and insurance fees, meaning that the procedures for transportation and insurance are handled by the buyer and the costs are paid by the buyer, and the seller needs to bear the local charges.
The difference between FCA and FOB:
1. The transportation methods of FCA and FOB are different: FOB is only applicable to sea transportation, while FCA is suitable for any mode of transportation.
2. FCA and FOB delivery locations are different: FOB transportation is delivered at the port of shipment, while FCA transportation requires delivery at the location specified in the contract.
3. The risk boundary between FCA and FOB is different: the risk boundary between FOB buyer and seller is at the ship's rail at the loading port, while FCA delivers at the designated delivery location.
4 The transport documents used by FCA and FOB are different: FOB will only be a sea bill of lading, while the transport bill of lading used by FCA depends on different modes of transportation.
5 FCA and FOB have different regulations on the burden of loading and unloading fees: FOB, in the case of chartering a ship, has a distortion of trade terms to solve the burden of loading and unloading fees, while FCA does not need to produce a distortion of trade terms to solve the burden of loading and unloading fees.

