In international trade, the use of standardized terms known as Incoterms plays a crucial role in defining the responsibilities and obligations of buyers and sellers during the transportation and delivery of goods. These terms establish important guidelines for both parties, ensuring a smooth and transparent transaction. This article aims to explore the distinction between two commonly used Incoterms: Free on Board (FOB) and Free Carrier (FCA). By delving into the details of these terms, we will uncover their meanings, costs, obligations, and risks.
Additionally, we will highlight the key differences between FCA and FOB and explain the significance of understanding these variances in international trade.
