Glossary
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Freight on Board (FOB Shipping)

Freight on Board (FOB Shipping)

Freight on Board (FOB Shipping) is an Incoterm indicating that the seller is responsible for delivering the goods to the vessel, covering costs and risks until the goods are on board.

Free on Board (FOB) is an incoterm indicating the transfer of ownership and liability for goods during shipping.

"FOB Origin" signifies that the buyer assumes all risk once the seller ships the product, receiving the title for the goods at the shipping point. In this scenario, the seller's responsibility concludes when the items are handed over to the carrier, and it becomes the buyer's duty to ensure the safe and timely delivery of the goods.

On the other hand, "FOB Destination" means the seller retains the risk of loss until the goods reach the buyer. In this case, the seller remains the owner of the goods and is accountable for replacing any damaged or lost items until the goods reach their final destination.

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