FCA or FOB? A Practical Conversation Before Booking Freight

Shipping guide · Reviewed 10 October 2026

Cargo cranes and vessels at a port — Illustrative image.

A delivery term should reflect how the goods will actually move. Choosing familiar initials without agreeing the named place and handover point can leave a buyer and supplier working from different assumptions.

Start with the handover point

ICC’s Incoterms® 2020 checklist points to FCA when goods travel in containers or by multimodal transport, or are delivered to an inland or port terminal. It identifies FOB with delivery on board a vessel in the relevant sea or inland-waterway arrangement. A container delivered to a terminal before vessel loading therefore deserves a careful discussion of FCA.

Describe the intended arrangement

Where will the supplier make delivery under the proposed term?
Who appoints the carrier and arranges the main transport?
Who handles export and import formalities?
Which origin and destination charges are included in the quotation?
What transport documents will the buyer, seller or bank require?

Write the quotation precisely

A working quotation should identify the chosen rule, the named place or port and the edition being used. “FCA, agreed named place, Incoterms® 2020” is a structure to complete with a real location; it is not a substitute for agreeing the actual handover arrangements.

Keep product acceptance, payment timing and other commercial terms explicit in the order documents. Do not assume that a delivery term answers every question about the transaction.

Compare like with like

Ask the forwarder for a charge breakdown using the same shipment data and delivery scope. An apparently lower product price may exclude activities included in another quotation. Record exclusions and unresolved charges alongside the figures.

CAPAZ Holding can discuss coordination between a supplier, buyer and appointed logistics provider. The agreed service scope should state who makes commercial decisions and who is responsible for each transport activity. Refer to the current official ICC rules and obtain specialist advice where the arrangement needs it.

Sources & further reading

Sources checked on 10 October 2026. Practical checklists are CAPAZ Holding editorial guidance; transaction requirements should be confirmed for the particular goods and route.