What does FOB stand for in business?

Question

I frequently see what does FOB stand for in shipping and business discussions. What does FOB mean, and why is it important for buyers and sellers?

Vicky · Answer

FOB stands for Free on Board. In business and shipping, it defines when responsibility, costs, and risk for goods transfer from the seller to the buyer during transportation.

Cinderella · Answer

FOB stands for “Free on Board.” In business and shipping, it describes when the buyer takes responsibility for the goods during transportation.

For example, FOB shipping point means the buyer assumes responsibility once the seller ships the goods, while FOB destination means the seller remains responsible until the goods reach the buyer.

Clay · Answer

The meaning of FOB is "Free on Board." In commercial and freight transport, FOB refers to the point where responsibility, cost, and risk for cargo shift from seller to buyer.

Steve · Answer

The term FOB means Free on Board. In commerce and shipping, it refers to the point in time at which ownership of cargo passes from seller to buyer.

Answers