What is the trade term FCR? The difference between freight forwarding receipt and bill of lading and a practical guide

The main functions and features of FCR freight forwarding receipt

Main functions of FCR

1. Proof of delivery of goods : FCR is  the trade term to prove that the goods have been  to the freight forwarder as  and that the freight forwarder has accepted the transportation arrangements.
2. Convenient operation : FCR is quickly, reducing the time waiting for documents before shipment.
3. Improve transportation efficiency : FCR is suitable for transportation scenarios without property rights requirements, such as sellers paying in full or long-term cooperative customers with good credit.

Characteristics the trade term of FCR

Compared with traditional transport documents such as bills of lading, FCR has the following unique features:

• The scope of application is concentrated on the FOB terms :
  FCR usually appears under the FOB the trade term terms and is used to prove that the seller has its delivery obligations.
• Does not have the function of proving title to goods:
  Unlike a bill of lading, an FCR is only a receipt, not a certificate of title to goods, and therefore cannot be  to transfer title to goods.
• High issuance flexibility:
  FCR is similar to a cargo receipt and can be  by almost any freight forwarder, with a low issuance threshold.
• Importers do not need FCR to pick up goods:
  Since FCR is not a document of title to goods, importers do not need to provide FCR when picking up goods at the destination.
• Risk bearer:
  On the surface, the risk is mainly borne by the carrier, but since FCR does not involve the right of cargo, its legal protection is relatively weak, so both parties to the trade  to use it with caution.

What modes of transport does FCR apply to?

FCR is applicable to various modes of transportation which version control system should your developers use? due to its flexibility and rapid the trade term issuance. The following are its specific application scenarios:

1. Ocean Freight:

• When used for small-volume cargo transportation, especially in transactions without financing requirements, the seller can use FCR to keys to improving openness in your email marketing examples prove to the buyer that the goods have been  to the freight forwarder.
• In the ocean freight LCL business. FCR is often  as a transport certificate issued by the LCL agent.

2. Air the trade term Freight:

• Air transport is faster and proof of cargo ownership. Usually not required for picking up the goods. FCR is suitable as a certificate to lithuania phone number prove that the goods have been delivered to the air carrier.

3. Road Freight:

• In international road transport scenarios, FCR is used to record the handover of goods, especially in cross-border transport in Europe.

4. Rail Freight:

• In some cross-border railway transport projects (such as the China-Europe Express). FCR serves as a preliminary delivery certificate and is particularly suitable for scenarios that require quick handover.

5. Multimodal Transport:

• FCR can be used as proof of the goods entering the first stage of transportation in multimodal transport. And sometimes as a supplementary the trade term document to subsequent transport documents (such as MTD).

Comparison of FCR with other transport documents

The difference between FCR and ocean bill of lading (B/L)

FCR and Bill of Lading (B/L) are two important transport documents in international trade, but they have significant differences in function, legal nature and usage scenarios.

Functional Difference

• FCR (Freight Forwarder Receipt) :
  FCR is only used as proof that the goods have been  to the freight forwarder. It is mainly used to confirm that the freight forwarder has  the goods and is responsible for the subsequent transportation. It does not have the function of property rights. Therefore. It cannot be used as a receipt for picking up goods.
• Bill of Lading (B/L) :
  The bill of lading not only proves that the goods have been  or loaded by the carrier, but also serves as a certificate of title.

The difference in legal nature

• FCR :
  It does not have the function of transferring property rights in the legal sense. It is just a commitment document by the freight the trade term forwarder to confirm the status of the goods, but it cannot b as the basis for contract execution.
• Bill of Lading :
  The bill of lading is the carrier of the transport contract and has legal effect. It also plays a role in transferring the ownership of the goods (such as the transfer of the bill of lading).