FCA vs FOB: FCA for Containers, FOB for Bulk Sea Cargo

FCA and FOB both let the buyer control transport through their own forwarder while the seller is responsible only through export clearance. They feel similar and get confused, but the transport mode and the basis on which risk transfers differ. Reaching for FOB out of habit on containerized cargo opens a risk gap.

For each rule on its own, see FCA explained and FOB explained; for the full map of all 11 rules, see the complete Incoterms 2020 guide.

What FCA and FOB Share, and Where They Split

Shared: both are Group F, so the buyer pays main freight to destination and the seller is responsible for export clearance. Control of transport sits with the buyer.

Different: FOB is for sea and inland-waterway only, with risk based on "loading on board." FCA works for any mode, with risk based on "delivery to the carrier."

The Core Difference

The line that matters most is the delivery/risk basis. Under FOB, risk transfers only once the goods are on board; under FCA, risk transfers once they are handed to the named carrier.

The Risk Gap FOB Creates for Containers

This is the crux. Containerized (FCL) cargo is not loaded on board directly but handed to the carrier at the terminal or CY. A container enters the CY and then waits before it is actually loaded on board.

Under FOB, with risk based on "loading on board," it gets murky who bears the risk if the cargo is damaged between CY entry and loading. The seller may consider it delivered; the buyer may consider it not yet on board.

FCA has no such gap because risk is based on "delivery to the carrier." The moment the goods are handed over at the CY, risk transfers cleanly. That is why FCA, not FOB, is accurate for containers.

FCA Works Even in Letter-of-Credit Trade

There used to be a belief that because a letter of credit required an on-board bill of lading, you had to use FOB with its loading-on-board basis. Incoterms 2020 added an option for the buyer to instruct the carrier to issue an on-board B/L to the seller, making FCA easy to use even in letter-of-credit transactions.

For Air and Multimodal, FOB Does Not Fit at All

FOB assumes "loading on board," so it simply does not fit air, road, or multimodal transport, where there is no on-board concept. Using FOB there leaves the risk-transfer point undefined. FCA, usable for any mode, is the accurate choice.

Import Duty Is on a CIF Basis for Both

Korea assesses import duty on a CIF-based customs value (freight and insurance included). Whether FCA or FOB, you add international freight and insurance to the contract amount to reach the dutiable value. The method is the same, so you can check the duty on an FCA or FOB amount plus freight and insurance with the FOB import duty calculator.

So Which Fits Your Deal

• You control transport for containers (FCL/LCL) → FCA. Risk transfers cleanly at CY handover with no gap.
• Air or multimodal → FCA, since there is no on-board concept.
• Bulk or conventional sea cargo actually loaded on board → FOB's loading-on-board basis matches reality.

FOB is used for containers out of habit, but switching to FCA removes the risk gap. If you are unsure which rule fits, we can work through it with you based on cargo form and transport mode.

This guide is for general information. Actual contracts depend on the detailed rules and each deal, so confirm against the ICC rules and with a specialist.