FOB

Incoterms

Free on Board

The seller delivers the goods on board the vessel at the named port of loading, export-cleared; the buyer pays the freight and everything after.

In practice

The most common term in Asia export trade, even for containers where FCA technically fits better. Risk passes once goods are on board. Origin charges (THC, doc fee) are for the seller; freight, insurance, and destination charges are for the buyer. Note the US domestic FOB (origin/destination) means something different.

Seen in the wild

FOB Shanghai. Buyer's nominated forwarder to arrange freight collect.

Watch out

Under FOB the buyer chooses the carrier. A seller who books freight anyway may end up liable for a rate the buyer never agreed to.

Also writtenfree on board · f.o.b.ModeallRegionglobal

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