FOB
Logistics
FOB (Free On Board)
Free On Board
Sea-freight Incoterm where risk transfers when goods are loaded on board the vessel at the named port.
Examples
- 01Under FOB Shanghai, the seller is responsible until the goods are loaded on the ship, after which the buyer takes over.
- 02Logistics reviews FOB shipments to make sure the buyer's sea freight and insurance start when goods are loaded.
- 03Using FOB lets the buyer choose its own shipping line and consolidate freight from several suppliers in Shanghai.