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FOB (Free on Board)


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Understanding the Incoterm "FOB" (Free on Board)

What does the FOB incoterm entail?

The FOB incoterm involves several key aspects:

Export Clearance and Product Transfer

  • What is the seller's responsibility under FOB?
  • When does the seller export-clear the products?
  • How are the goods transferred to the ocean vessel?

Cost and Risk Transfer

  • When does the transfer of cost and risk occur in FOB?
  • What is the significance of the items passing the ship's rail?

Applicability of FOB

When should the term "FOB" be used?

What type of cargo is suitable for FOB description?

Alternatives to FOB for Containerized Goods

  • What is a more appropriate incoterm for LCL and containerized goods?
  • Where should containerized goods be delivered for FCA to be applicable?

Negotiating Costs and Risks

What is the role of negotiation between the buyer and the seller in FOB terms?

How do they determine who bears what costs and risks?

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