FOB - FREE ON BOARD (... named port of shipment)
- 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.
© 2004 John Michael Pierobon