Free On Board (FOB) in Shipping: Meaning, Incoterms & Pricing
FOB (Free On Board) stands as an essential Incoterm (International Commercial Term) that international traders often use. Under the FOB provision, sellers transfer goods ownership to buyers at a predetermined shipping point. With FOB (Free On Board), the seller fulfills their duties when their goods reach full loading status upon vessel departure from the shipment port.
The goods pass from seller responsibility to buyer responsibility when they clear the named port's ship rail.