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

In international freight operations, the standardization and selection of documents are crucial. FCR (Forwarder’s Certificate of Receipt/Forwarder’s Cargo Receipt) is an important transport document and is often used in foreign trade transactions, especially when the goods The difference are  by a freight forwarder. with the bill of lading (B/L), FCR does not have the function of a property certificate, but due to its flexibility and efficiency, it has become an irreplaceable tool in certain specific transactions. So, what exactly is FCR? What are its functions and characteristics? How to use it correctly in actual foreign trade? This article will give you a comprehensive analysis.

What is The difference FCR?

FCR, the full name is Forwarder’s Certificate of Receipt or Forwarder’s Cargo Receipt. Both are documents used to confirm that the goods have been  over to the service must provide a clear the freight forwarder and are ready for transportation.is more common, while  may be  in certain specific circumstances. It is intended to prove that the goods have been dby the shipper to the freight forwarder and that the subsequent transportation responsibilities have been a It usually contains the following information:

• Shipper’s details
• Details of the consignee
•  description of the goods (such as quantity, weight, packaging, etc.)
• Freight forwarding company name and date of issuance

Unlike a bill of lading, an FCR is not a The difference document of title and is only used as a proof that the goods have been  to the freight forwarder. Therefore, the use of an FCR in a transaction requires caution, especially when the credit relationship between the buyer and the seller is insufficient.

The main functions and features of FCR freight forwarding receipt

Main functions of FCR

1. Proof of delivery of goods : FCR is used to la naturaleza esporádica de la campaña puede prove that the goods have been delivered to the freight forwarder as agreed and that the freight forwarder has accepted the transportation arrangements.
2. Convenient operation : FCR is issued 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 difference 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 shops 9177 terms and is used to prove that the seller has fulfilled 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 used to transfer title to goods.
• High issuance flexibility:
  FCR is similar to a cargo receipt and can be issued 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 The difference 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 need to use it with caution.

What modes of transport does FCR apply to?

FCR is applicable to various modes of transportation due to its flexibility and rapid 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 prove to the buyer that the goods have been delivered to the freight forwarder.
• In the ocean freight LCL business, FCR is often used as.

2. Air Freight:

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

3. Road Freight:

• In international road transport scenarios, FCR is used to The difference 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 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.