Air Freight Incoterms Explained: FCA, CPT & CIP (When Risk Transfers in Air Shipments)
Air Freight is the backbone of time-sensitive international trade, especially for high-value goods such as electronics, pharmaceuticals, garments, and perishables. Unlike maritime Incoterms (FOB, CIF, etc.), which are tied to port operations, air freight relies almost exclusively on multimodal-friendly Incoterms. The International Chamber of Commerce (ICC) confirms that the three most frequently applied rules for air cargo are FCA, CPT, and CIP.
Understanding them in detail is not just about logistics—it has implications for risk allocation, cost visibility, trade finance eligibility, and dispute prevention.
Free Carrier (FCA) is indeed a cornerstone of international trade due to its flexibility and the clear division of responsibilities it offers. Its functionality is particularly enhanced by a key update in the Incoterms 2020 rules, which directly addresses the needs of letter of credit transactions.