FOB - Free On Board - What is the meaning of FOB shipping term? Using the FOB Incoterm rule, the seller is responsible for the delivery of goods loaded on board the vessel. The risk and costs are transferred to the buyer as soon as the goods have been loaded onboard the vessel.
Note: The use of this Incoterms rule is restricted to goods transported by sea or inland waterway.
Did you know? The named place for using the Free On Board Incoterms rule is always the loading port.
With all incoterms it is important to understand the obligations of both the buyer and seller. There are eleven incoterms covering international shipments, are you aware of all the different options? If you need shipment support, please reach out to the team!
FREE DOWNLOAD: You can download our free Incoterms chart which provides simple explanations of all eleven incoterms here
Click below for more information on shipping terms:
FCA (Free Carrier)
CPT (Carriage Paid To)
CIP (Carriage and Insurance Paid To)
DAP (Delivered at Place)
DPU (Delivered at Place Unloaded)
DDP (Delivered Duty Paid)
FAS (Free Alongside Ship)
FOB (Free On Board)
CFR (Cost And Freight)
CIF (Cost, Insurance And Freight)