What does FOB mean in shipping and trade?

Question

I often see FOB on invoices and shipping documents. Can someone explain what FOB means and how it affects shipping costs and ownership of goods?

Vicky · Answer

FOB stands for “Free On Board.” In shipping and trade, it is an Incoterm that defines when responsibility and risk for goods transfer from the seller to the buyer, typically when the goods are loaded onto the vessel at the named port.

Thomas · Answer

The term FOB means Free On Board. In business, it is one of the Incoterms, which is used to show when the delivery of goods passes from the seller to the buyer, usually when the goods are on board the vessel at the port of shipment.

Charity · Answer

FOB is an acronym for “Free on Board”. FOB is one of the many terms of trade used in international trading and shipping where responsibility and risk pass from seller to buyer. It occurs when the goods are put on board the ship at the designated port.

Jonny · Answer

FOB stands for Free On Board. This is an Incoterm in business, which refers to the point where the transfer of goods takes place between the buyer and the seller. It is typically done when the goods have been loaded on the ship in the port of shipment.

Clay · Answer

FOB stands for “Free on Board”. This term is among those that are used in international business for transfer of responsibilities and risks from the seller to the buyer. The point at which the goods are loaded onto the vessel at the specified port is known as FOB.

Jonny · Answer

FOB stands for Free On Board. In trade and commerce, it is one of the Incoterms that indicates the point of transfer of the ownership of goods from the seller to the buyer, which occurs when the goods are loaded on the vessel at the port of shipment.

Kevin · Answer

The acronym FOB represents "Free On Board." This term is used in shipping and trading and is an Incoterm that specifies the point where the responsibility and liability for the products pass from the seller to the buyer.

William · Answer

The acronym FOB means “Free On Board”. In the context of cargo transportation, it is an Incoterm, which sets out the point of transfer of responsibilities and risk from the seller to the buyer, usually at the loading of the goods on board at the nominated port.

Steve · Answer

The meaning of FOB is "Free On Board". FOB is among the numerous terms of trade that exist in international business transactions. This happens when the goods are loaded onto the ship at the specified port.

Answers