FOB (Free On Board)

FOB (Free on Board) is a shipping term that defines when the responsibility for goods transfers from the seller to the buyer. Under FOB terms, the seller is responsible for delivering the goods to a designated shipping point and covering all costs until the goods are loaded onto the transport vehicle. After that point, the buyer assumes responsibility for the cost, risk, and ownership during transit. This arrangement helps clarify who is responsible for the goods at various stages of shipping, which is important for both sellers and buyers in international trade.