Warehouse & Logistics Encyclopedia
Your comprehensive guide to warehouse, logistics, and supply chain terminology. Explore over 100+ industry terms with detailed explanations and practical insights.
FOB (Free On Board)
An Incoterm where the seller fulfills obligation once goods pass the ship's rail at the port of shipment.
Definition
FOB specifies that the buyer assumes risk and costs for goods once they are loaded onto the vessel at the origin port.
Overview
FOB is commonly used in maritime shipping to clarify responsibilities and risk transfer between seller and buyer.
Role
An Incoterm where the seller fulfills obligation once goods pass the ship's rail at the port of shipment.
Focus
FOB is commonly used in maritime shipping to clarify responsibilities and risk transfer between seller and buyer.
Example
A textile exporter ships garments FOB port of Shanghai; the importer arranges ocean freight and insurance to the destination.
FAQs
Q: Can you give an example of FOB (Free On Board)?
A: A textile exporter ships garments FOB port of Shanghai; the importer arranges ocean freight and insurance to the destination.