What are Group F Terms?

Incoterms explained in simple words

The international Incoterms rules divide delivery terms into four groups based on the level of responsibility assumed by the seller and the buyer:

🔹 Group E – Minimum seller obligations (EXW)
🔹 Group F – Seller delivers goods to the carrier; buyer pays for the main carriage (FCA, FAS, FOB)
🔹 Group C – Seller pays for main carriage, but risk transfers earlier (CFR, CIF, CPT, CIP)
🔹 Group D – Maximum seller responsibility, including delivery to the final destination (DAP, DPU, DDP)

Group F – Main Carriage Unpaid

International trade is all about clearly defining who does what, when, and at whose cost. The Incoterms rules exist to remove ambiguity and help buyers and sellers avoid costly misunderstandings.

Group F terms are particularly important when the buyer wants to control the main transport leg — for example, because they have better freight rates, existing contracts with carriers, or prefer to manage transit risks themselves.

In these cases, the seller handles only the initial stage and export clearance, while the buyer takes over from an agreed point in the seller’s country.

FCA – Free Carrier

Format: FCA [named place]

Definition: The seller delivers the goods, cleared for export, to the carrier or another party nominated by the buyer at the agreed location.

Two delivery options:

1. At the seller’s premises – e.g., the seller’s warehouse in Baku. The seller loads the goods onto the truck arranged by the buyer. From this moment, all risk and cost pass to the buyer.

2. At another agreed location – e.g., a logistics terminal in Alat. The seller transports the goods there but does not unload unless otherwise agreed. Risk transfers when the goods are handed to the carrier.

Example: A machinery manufacturer in Sumgait sells equipment to a customer in Germany. The buyer hires their own freight forwarder. The seller loads the goods onto the forwarder’s truck at their factory — risk and cost transfer immediately at loading.

Mode of transport: Any (road, rail, air, sea, multimodal).

FAS – Free Alongside Ship

Format: FAS [named port of shipment]

Definition: The seller delivers and places the goods alongside the vessel nominated by the buyer at the agreed port, and handles export clearance.

Risk transfers when the goods are placed next to the vessel (on the quay, in a barge, etc.).
Mode of transport: Sea and inland waterway only.

Example: An Georgia grain exporter sells wheat to a buyer in Egypt. The seller delivers the grain in barges to the quay next to the buyer’s ship in Poti Port. The buyer pays for loading onto the ship and the sea freight to Alexandria.

FOB – Free On Board

Format: FOB [named port of shipment]

Definition: The seller delivers the goods on board the vessel nominated by the buyer at the agreed port, completing export formalities.

Risk transfers once the goods are loaded on the vessel.
Mode of transport: Sea and inland waterway only.

Example: A carpet exporter from Azerbaijan sells to a buyer in Italy. The buyer arranges and pays for the ship from Poti Port. The seller loads the container onto the vessel — after that, the buyer assumes all costs and risks.

Group F Summary:

• FCA (Free Carrier) – Delivery can take place either at the seller’s premises (with loading included) or at another agreed location (without unloading). The buyer pays for the main carriage. Applicable to all modes of transport.
• FAS (Free Alongside Ship) – The seller delivers the goods alongside the vessel at the named port. The buyer pays for the main carriage. Applicable only to sea and inland waterway transport.
• FOB (Free On Board) – The seller delivers the goods on board the vessel at the named port. The buyer pays for the main carriage. Applicable only to sea and inland waterway transport.

Key Takeaways

• In Group F, the main transport is always arranged and paid for by the buyer.
• The seller’s responsibility ends at the agreed delivery point in the country of origin.
• Always clearly specify the named place or port in the sales contract.

Learn more about the Incoterms E group -> https://alliancemultimodal.com/what-is-group-e-and-the-exw-ex-works-term/