FCR, or Forwarder's Cargo Receipt, is a document recommended for use by international freight forwarders, as endorsed by the International Federation of Freight Forwarders Associations (FIATA). Literally, this document serves as a receipt issued by the freight forwarder upon receipt of goods rather than as a transportation document. However, based on the sample FCR provided by FIATA and its usage, freight forwarders prominently state on the front of the FCR: "We place the goods under the control of the consignee or deliver them to the consignee based on irrevocable instructions." When the FCR states only that the goods are "placed under the control of the consignee," a legal agency relationship exists between the freight forwarder and the consignee. In this case, the freight forwarder collects goods, consolidates shipments, and books shipping space according to the consignee's instructions. Here, the FCR primarily functions as a receipt for the goods, not as a shipping document. Many international supermarket buyers, such as Wal-Mart and K-Mart, commonly utilize this method.
However, when the FCR indicates "delivering the goods to the consignee," the freight forwarder commits to "transporting" the goods to their destination as per the transportation requirements specified in the FCR. In this situation, the freight forwarder effectively assumes the legal status of a non-vessel operating common carrier (NVOCC), and the issued FCR should be regarded as a transportation document, serving as proof of the transport contract governed by China's Maritime Code. Article 80 of this code stipulates that documents issued by the carrier other than a bill of lading serve as preliminary evidence of the maritime cargo transport contract and the receipt of the goods listed in that document.
Common scenarios arise when buyers procure large quantities at the export location or have agents or branch offices placing orders. This centralized shipping not only saves transportation time but also reduces freight costs. Consequently, agents or branch offices often instruct exporters or suppliers to hand over the goods to the carrier. The carrier pre-books several containers with the shipping company and is responsible for loading them. When the goods arrive at the unloading port or destination, the carrier handles the retrieval of the containers or their distribution to different consignees, thus saving significant time and expenses.
