Transportation
FOB (Free On Board)
An Incoterm where the seller fulfills obligation once goods pass the ship's rail at the port of shipment.
F
Updated 2025-10-01
Definition
FOB specifies that the buyer assumes risk and costs for goods once they are loaded onto the vessel at the origin port.
Overview
Overview
FOB is commonly used in maritime shipping to clarify responsibilities and risk transfer between seller and buyer.
Responsibilities
- Seller: Deliver goods onto the vessel and clear for export
- Buyer: Responsible for main carriage, insurance, and import
Example
A textile exporter ships garments FOB port of Shanghai; the importer arranges ocean freight and insurance to the destination.
Tags
#FOB#Incoterms#Shipping#International Trade
Related Terms
FCA (Free Carrier)
EXW (Ex Works)
DDP Shipping
