FCA or FOB? Name the Container Delivery Point

“FOB China” names neither a precise port nor the physical event that completes delivery. For containerized or multimodal cargo, the buyer should connect the selected Incoterms® rule to the real carrier handover, the exact location and the evidence the parties will retain.

Start with the transport pattern

The ICC's Incoterms® 2020 checklist points toward FCA when goods travel in containers or by multimodal transport, or when delivery occurs at an inland or port terminal. It points toward FOB for general or bulk cargo delivered directly on board a vessel. This is a selection guide, not a substitute for transaction-specific advice.

Name the place precisely

Write the three-letter rule, the edition and the exact place or port point. A named city or broad port can still leave terminal, gate, depot or loading-point uncertainty. Reconcile the same location across the purchase order, supplier quotation, forwarder instruction and booking.

Define the handover evidence

For FCA, identify the carrier, the party providing the collecting vehicle, the agreed delivery point and the receipt or electronic record that shows the handover. For FOB, identify the named port of shipment and the evidence showing delivery on board. If an on-board bill of lading is needed in an FCA transaction, Incoterms® 2020 allows the parties to agree an instruction through the buyer's carrier; document that mechanism before shipment.

Keep other contract controls separate

Incoterms allocate specified delivery, risk, cost and obligation boundaries. They do not by themselves decide title, payment security, inspection acceptance, product compliance, adequate insurance cover or every obligation in the transport contract. Keep those controls explicit in the relevant agreements.

Buyer checklist

• rule + “Incoterms® 2020”;
• exact named place, terminal or port point;
• carrier appointment and main-carriage booking;
• physical handover event and retained evidence;
• export-clearance responsibility;
• terminal and local-charge assumptions; and
• sales-contract acceptance, payment, title, insurance and compliance terms.

Primary sources

• ICC — Incoterms® 2020 Checklist and Flowcharts
• ICC — Incoterms® 2020
• ICC — Incoterms® 2020 Q&A

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