An international sale made with FCA INCOTERM favors the seller because the seller has to only deliver the goods to a designated location, determined by the buyer. Whereas in CIF INCOTERM, the seller is obligated to arrange for the contract of carriage up to the buyer’s designated port.

Nov 10, 2024 · The key difference between FCA and CIF is that FCA offers more flexibility for the buyer, while CIF simplifies things early on and shifts responsibility once the goods are in transit. Understanding these differences is essential to streamline shipping operations and ensure smoother international transactions.

CIF (Cost, Insurance, and Freight) and FCA (Free Carrier) are both international trade terms used in shipping and logistics. CIF places the responsibility for the goods on the seller until they reach the destination port, including the cost of insurance and freight.

Aug 26, 2022 · The following information explains about the difference between CIF and FCA under Incoterms 2020. As you are aware FCA means Free Carrier to a named destination agreed between buyer and seller under their contract of carriage where in the seller’s responsibility on costs and risks for movement of goods transfers to buyer when goods are loaded ...

What are the Differences Between Free Carriere (FCA) and Cost, Insurance, and Freight (CIF)? The seller is responsible for the delivery and shipment manner agreed upon in advance with the customer in FCA delivery mode.

Sep 24, 2018 · FCA - Free Carrier. FCA is just one step up from EXW, in which the seller clears the goods for export and delivers the goods to the port of export. Next, the buyer has to unload the goods in the port and is responsible for them once they reach the port. Next, the buyer arranges the carrier.

Jun 16, 2022 · FCA vs CIF. In Cost, Insurance, and Freight (CIF), the buyer is responsible for all transport costs until the goods reach the destination port. The seller is also obligated to buy insurance in CIF, and it must cover at least 110% of the value of the goods.

Aug 13, 2024 · Under the CIF (Cost, Insurance, and Freight) Incoterm, it’s important to understand when risk shifts from the seller to the buyer. This point can be confusing because the seller covers the cost of freight, but the actual transfer of risk happens earlier. Here’s a …

Jul 23, 2023 · What Is the Difference Between FCA and CFR? CFR refers to "cost and freight" while FCA refers to "free carrier." FCA stipulates that the seller and buyer must agree on the point of...

FCA is not only applicable to various modes of transport, from Less than Container Load (LCL) to Full Container Load (FCL) and air freight, but it was also updated in the latest Incoterms revision in 2024 to optimize the shipping process.