What is FOB?

FOB stands for “Free On Board” and is a commonly used term in international trade and shipping. It is an Incoterm (International Commercial Terms) that defines the responsibilities and costs associated with the delivery of goods from a seller to a buyer.

When used in a sales contract, FOB indicates the point at which the seller’s responsibility for the goods ends, and the buyer’s responsibility and liability begin. The term specifies who will be responsible for the costs and risks associated with the transportation and delivery of the goods.

FOB has two variations commonly used:

FOB Origin: FOB Origin means that the buyer takes ownership and responsibility for the goods as soon as they are shipped from the seller’s location or origin. The buyer bears the costs and risks associated with transportation, including freight charges, insurance, customs duties, and any other expenses incurred until the goods reach the destination.

FOB Destination: FOB Destination means that the seller retains ownership and responsibility for the goods until they reach the buyer’s specified destination. The seller covers the costs and risks associated with transportation, including freight charges, insurance, customs duties, and other expenses until the goods are delivered to the buyer’s location.

We ensure all products in the catalog are FOB price. Custom orders are negotiated separately.

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