Forwarder’s Cargo Receipt
A Forwarder’s Cargo Receipt (FCR) is a document issued by a freight forwarder to confirm that they have received the goods from the shipper for onward shipment. It acts as formal proof that the cargo is in the forwarder’s possession and ready to be processed for transport. Unlike a Bill of Lading, the FCR does not serve as a document of title, but it does provide clear acknowledgment that the shipment has been handed over correctly.
The FCR is widely used in trade transactions where the shipper needs documentation promptly—especially in Letter of Credit (LC) arrangements. Because banks often require evidence that goods have been delivered to the logistics provider, the FCR serves as a trusted document to support payment processes. It assures buyers and banks that the forwarder is responsible for moving the cargo according to agreed terms.
Forwarders issue the FCR only when they fully control the cargo, meaning they have verified the shipment details and accepted the goods for transport. This makes the document highly reliable in international trade. It also helps reduce disputes related to shipment handover or cargo handling. The FCR creates transparency and reinforces accountability in the supply chain.
Overall, the Forwarder’s Cargo Receipt is an important document for exporters working with financial institutions or managing complex shipments. It supports smooth documentation flow, builds trust between trading partners, and ensures that goods are recognized as officially received by the forwarder before the journey begins.
Frequently Asked Questions about Forwarder’s Cargo Receipt
Clear answers to the most common questions people have when learning about Forwarder’s Cargo Receipt.
An FCR confirms receipt of goods but does not act as a document of title. A Bill of Lading provides receipt, transport contract, and ownership control.
Banks often accept it as proof that goods have been handed over to the forwarder, allowing payment processing to continue without waiting for the Bill of Lading.
Only after they physically receive the cargo, verify the shipment details, and take responsibility for moving it as arranged.