Free on Board (FOB)
Free on Board (FOB) is an Incoterm that specifies the point at which the seller's responsibility for the goods ends and the buyer's responsibility begins. Under FOB terms, the seller is responsible for delivering the goods onto the ship at the designated port of shipment, including all costs and risks up to that point. Once the goods are on board, the buyer assumes responsibility for transportation, insurance, and any subsequent costs.
Related glossary terms
CIF (Cost Insurance Freight)
CIF is the Incoterm where the seller pays cost, insurance, and freight to the buyer's port of destination. Learn risk transfer points and CIF vs. CFR.
Incoterms (International Commercial Terms)
Incoterms (International Commercial Terms) are ICC-published trade terms that define buyer and seller responsibilities for costs, risks, and tasks in…
Shipper
Shipper is an individual or company that sends goods from one location to another, responsible for preparing the shipment, arranging transport, and completing…
Cargo Insurance
Cargo insurance is a risk management tool protecting against financial loss from damage, theft, or destruction of goods in transit by sea, air, road, or rail.
