FCA vs. FOB Incoterms: Cost, Risk & The Dangerous "Container Trap"

Are you still using FOB for shipping container freight? You might be exposing your business to massive financial risk without realizing it! In this beginner's guide to Incoterms, we break down two of the most popular trade terms in international commerce: FCA (Free Carrier) and FOB (Free on Board). Learn where the legal "relay race" handoff happens, who pays for freight and customs clearance, and why the International Chamber of Commerce (ICC) urges exporters to avoid the "FOB Container Trap." 📌 Key Takeaways: • The Delivery & Risk Line: Why delivery doesn't mean arrival at your customer's doorstep. • FCA (Free Carrier): How multimodal flexibility protects sellers on dry land. • FOB (Free on Board): Why traditional maritime rules require loading over the ship's rail. • Customs Breakdown: Who handles export clearance vs. import duties. • The FOB Container Trap: Why using FOB for containerized cargo leaves you liable inside port terminals. 💬 QUESTION OF THE DAY: Which Incoterm do you currently prefer in your sales contracts—FCA or FOB? Let us know your strategy in the comments below! 🔔 Subscribe to Vanijja | Trade Insights for weekly breakdowns on trade finance, Incoterms, and global logistics! ---------------------------------------- 🌐 CONNECT & CONTACT: • Website: https://www.exportreview.com • Media Creator LinkedIn:   / nhemratha   • Direct Email: khratha@gmail.com ---------------------------------------- #Incoterms #FCA #FOB #InternationalTrade #Logistics #SupplyChain #ExportImport #FreightShipping #CustomsClearance #GlobalTrade 00:00 - Introduction: The Risk of Cargo Handoff 01:40 - The Global Trade Relay Race: Defining Delivery & Risk 03:00 - Rule 1: FCA (Free Carrier) Explained & Delivery Options 04:27 - Rule 2: FOB (Free on Board) & Maritime Liability 05:35 - Customs Clearance: Export vs. Import Responsibilities 06:05 - The FOB Container Trap: The Most Expensive Exporter Mistake 07:25 - FCA vs. FOB: Which Rule Should You Choose?