Forwarder's Cargo Receipt (FCR)
What’s a Forwarder's Cargo Receipt (FCR)?
A Forwarder's Certificate of Receipt comes from a freight forwarder or an agent to the shipper. It validates that the cargo has been received for shipping and ascertains the completion of the relevant documentation. It is important to note that it doesn't confirm shipment. Upon issue, the consignor takes total responsibility for the ship. It also provides evidence to a buyer or bank that a freight forwarder is processing the shipment. The Letter of Credit must indicate that payment is eligible once an FCR is presented. A Forwarder's Cargo Receipt is advantageous to the seller because they can receive their payment sooner than waiting for the Bill of Lading.
Requirements of a Forwarder's Cargo Receipt (FCR)
A Forwarder's Cargo Receipt has two mandatory requirements for the agent or the freight forwarder. One is the responsibility for an accurate description of the received goods. The description above is used to effect payment. Secondly, the freight forwarder is responsible for the goods' safety while they are in their possession. Failure to safeguard the commodities under shipment, the agent, becomes liable towards the consignee. A Forwarder's Cargo Receipt isn't necessarily issued as an original copy as it's not a document title. However, shippers and the bank insist on receiving the original copy; therefore, the FCR is regularly issued in 3 originals and several copies.