What is the main difference between CFR and FCA?

They split 1 cost block differently. main carriage (freight) falls to the seller under CFR and the buyer under FCA.

Where does risk pass under CFR?

When the goods are loaded on board at origin — even though the seller keeps paying to the destination.

Where does risk pass under FCA?

When the goods are handed to the buyer’s carrier at the named place.

Can CFR and FCA both be used for container shipments?

FCA works for any mode of transport. CFR is written for sea and inland waterway transport only.

CFR vs FCA: who pays what

CFR is Cost and Freight. FCA is Free Carrier. Incoterms 2020.

The difference that matters

Main carriage (freight):CFRSeller·FCABuyer

Full cost split

Cost block	CFR	FCA
Export clearance	Seller	Seller
Carriage to port / terminal	Seller	Seller
Loading onto main carriage	Seller	Seller
Main carriage (freight)	Seller	Buyer
Insurance	Neither obliged	Neither obliged
Unloading at destination	Buyer	Buyer
Import clearance	Buyer	Buyer
Duties and import taxes	Buyer	Buyer
Risk passes	When the goods are loaded on board at origin — even though the seller keeps paying to the destination.	When the goods are handed to the buyer’s carrier at the named place.
Transport mode	Sea / inland waterway	Any mode

What people get wrong

CFR

Cost and risk split apart here. The seller pays freight for a voyage during which the buyer already carries the risk, and nobody is obliged to insure it.

FCA

The named place decides who loads. FCA at the seller’s premises means the seller loads; FCA at a terminal means they do not.

Questions

What is the main difference between CFR and FCA?: They split 1 cost block differently. main carriage (freight) falls to the seller under CFR and the buyer under FCA.
Where does risk pass under CFR?: When the goods are loaded on board at origin — even though the seller keeps paying to the destination.
Where does risk pass under FCA?: When the goods are handed to the buyer’s carrier at the named place.
Can CFR and FCA both be used for container shipments?: FCA works for any mode of transport. CFR is written for sea and inland waterway transport only.

Whichever term you agree, the paperwork has to say so

The Incoterm and named place belong on the commercial invoice, the packing list and the shipper's instructions — spelled the same way on each. ovrseas generates the set from one entry so they cannot disagree with each other.

Commercial invoice template

Compare other pairs

CFR vs CIF CFR vs CIP CFR vs CPT CFR vs DAP CFR vs DDP CFR vs DPU CFR vs EXW CFR vs FAS

Incoterms® is a registered trademark of the International Chamber of Commerce. This page is an independent summary of how costs and risk are allocated and is not affiliated with or endorsed by ICC. For contract drafting, use the official Incoterms® 2020 rules published by ICC.