Free on Board

Free on Board (FOB) is a shipping term used in international trade. It specifies when the responsibility for goods transfers from the seller to the buyer. Under FOB terms, the seller is responsible for all costs and risks until the goods are loaded onto a shipping vessel at the designated port. Once the goods are on board, the buyer assumes responsibility for all expenses and risks associated with the shipment, including transport and insurance. FOB terms clarify accountability, ensuring both parties understand their obligations in the shipping process.