FOB (Free on Board)
An Incoterm meaning the seller's responsibility ends once goods are loaded onto the shipping vessel.
Definition
Free on Board is a standard international trade term (Incoterm) under which the seller covers costs and risk up to the point the goods are loaded onto the vessel at the port of origin. The buyer arranges and pays for shipping insurance and freight from that point.
Why It Matters
Quotations specify the Incoterm (FOB, CIF or another) since it materially changes what is included in the quoted price.
Related Terms