Incoterms
What is Free On Board (FOB)?
Seller's cost and risk end once goods are loaded on board the vessel.
FOB (Free On Board) is an Incoterm for sea and inland-waterway transport. The seller clears the goods for export and bears all cost and risk until they are loaded onto the vessel at the named port of shipment. From that point the buyer pays ocean freight, insurance and onward costs, and bears the risk. FOB is one of the most widely used terms in international trade.
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