FOB - FREE ON BOARD (... named port of shipment)

Seller		Buyer
Risk Cost		Risk Cost

• FREE ON BOARD means the seller fulfills its obligation to deliver when the goods have passed over the ship's rail at the named port of shipment.
  • The buyer has to bear all costs and risks of loss of or damage to the goods from that point.

• FREE ON BOARD requires the seller to clear the goods for export.

• FREE ON BOARD can only be used for sea or inland waterway transport.

• In the case of roll-on/roll-off or container traffic, the ship's rail serves no practical purpose.
  • Use the FCA - FREE CARRIER term as it is more appropriate.

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© 2004 John Michael Pierobon

Notes