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Free on Board (FOB) Explained: Whos Liable for What in Shipping? Free on board (FOB) is a shipment term that defines the point in the supply chain when a buyer or seller becomes liable for the goods transported Purchase orders between buyers and sellers set
FOB (shipping) - Wikipedia FOB (free on board) is a term in international commercial law specifying at what point respective obligations, costs, and risk involved in the delivery of goods shift from the seller to the buyer under the Incoterms standard published by the International Chamber of Commerce
What Does FOB Mean in Shipping? - Freightquote What does FOB mean in shipping? FOB stands for “free on board” or “freight on board” and is a designation that is used to indicate when liability and ownership of goods is transferred from a seller to a buyer
FOB vs. FOB: Key Differences in Domestic and International Trade FOB means “Free On Board” —simple, right? Not exactly And for one Shipping Solutions client, that misunderstanding nearly cost them thousands The exporter had been shipping domestically for years using “FOB Destination” to indicate they would cover delivery to the buyer’s location
Free on Board (FOB) Shipping Points: All You Need To Know FOB, or “free on board,” is a widely recognized shipping rule created by the International Chamber of Commerce (ICC) It defines the point at which liability for goods transported by sea transfers from the seller to the buyer FOB status outlines who takes responsibility for a shipment from its port of origin to its destination port
What is FOB in Shipping? Types, Examples Comparisons Free on Board (FOB) is a standardized international trade term that specifies the point at which ownership and responsibility for goods transfer from seller to buyer Internationally, FOB shipping covers non-containerized sea freight In the United States, under the UCC, FOB also covers the domestic shipping process
FOB (Free on Board) - Incoterms® 2020 Rule [UPDATED 2025] FOB has its origins in the days of sailing ships In the Incoterms® 2020 rules, as in previous versions, FOB requires the seller to place the goods on board the vessel nominated by the buyer From that point on risk of loss or damage to the goods transfers to the buyer
What is FOB Destination? Meaning, Terms, Who Pays? The shipping term fob stands “free on board ” Shipping contracts and purchase orders often spell out the delivery and payment terms, the date when the loss risk switches from the seller to the buyer, and the party responsible for paying insurance and freight premiums