The goods are placed on board the vessel by the seller at the port of shipment specified in the sales contract. The risk of loss or damage is transferred to the buyer when the goods pass the ship's rail.

( F.O.B.) Price: The price actually charged at the point of loading.

Incoterms 2000) An international trade term of sale in which, for the quoted price, the seller/exporter/manufacturer clears the goods for export and is responsible for the costs and risks of delivering the goods past the ship's rail at the named port of shipment.

An arrangement in which the seller provides a product at an agreed upon unit price. This arrangement will occur at a specified loading port within a specified period, with the buyer having responsibility to arrange for transportation and insurance.

Free on Board (FOB) is a billing option for international shipments in which the shipper pays the shipping charges to the port of export and the consignee, or recipient, pays the balance. FOB is offered to UPS customers shipping packages by means of UPS Worldwide Express SM, UPS Worldwide Express Plus SM, and UPS Worldwide Expedited SM services. This payment plan is also called freight collect in the freight industry.

(exchange point): This expression follows an exchange point. The exchange point indicates the transition of responsibility (risk) from the buyer to the seller. See also Terms of Sale. For example: F.O.B. Origin The seller agrees to deliver the goods to the point of origin.

indicates the place where the responsibility for expenses and risk for goods is passed from seller to buyer. For example, F.O.B. Ann Arbor means that the buyer is responsible for freight charges and that ownership of the goods passes to the buyer after the shipment is loaded.

The point of delivery where title of goods transfers from the Seller to Rutgers.

See FOB.

Delivery, inspection and loading costs involved in putting LNG on a tanker at sellers' facilities are included in agreed price. Buyer pays all additional costs to transport and unload the cargo

The value of a product when it is loaded onto a vessel ready to be exported.

Transportation term indicating that the invoice price includes delivery at the seller's risk and expense to a specified destination and no further.

Loaded aboard carrier's vehicle at point where responsibility for risk/expense passes from seller to buyer.

(FOB) - See " Cargo Terms of Sale" Appendix G.

Under a fob contract, the seller provides the oil or oil product at a lifting installation and the buyer takes responsibility for shipping and freight insurance.

Shipping term included in a contract of sale (abbreviated as FOB) meaning that the seller fulfills his obligation to deliver when the goods have passed over the ship's rail at the named port of shipment, all costs of inland transportation and loading being included in the price of the goods. The buyer has to bear all costs and risks of loss of or damage to the goods from that point.

Implies that distributive services like transport and handling performed on goods up to the customs frontier of the economy from which the goods are classed as merchandise.

A pricing term indication that the quoted price includes the cost of loading the goods into transport vessels at the specified place.

"Free on Board" means that the seller fulfils his obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export. This term can only be used for sea or inland waterway transport. When the ship's rail serves no practical purpose, such as in the case of roll-on/roll-off transport, the FCA term is more appropriate to use

Shipped under a rate that includes costs of delivery to and the loading onto a carrier at a specified point.

The term has special significance in Marine Insurance, where it is vital to determine when title passes from the seller to the buyer. If the materials are shipped FOB point of destination, the seller is liable for damage caused during the course of transportation.

A common term regarding the liability on delivery of goods. When goods have been passed over the ship's rail at the named port of shipment, it should be the buyers instead of the sellers to bear all costs, risks of loss of or damage to the goods afterwards. The sellers are required to clear the goods for export under the FOB terms. This term can only be used for sea or inland waterway transport when the ship's rail serves no practical purpose.

Abbreviation: FOB. Incoterm→ Incoterms

The point at which the title of the goods passes from the shipper to the consignee.

When goods are shipped F.O.B., the shipper is responsible only until the goods have been placed on board the vessel or freight car or truck or other means of transport. After that the risk belongs to the consignee.

A transaction in which the seller provides a commodity at an agreed unit price, at a specified loading point within a specified period; it is the responsibility of the buyer to arrange for transportation and insurance.

A sales transaction in which the seller makes the product available for pick up at a specified port or terminal at a specified price and the buyer pays for the subsequent transportation and insurance.

An acronym for “free on board” when used in a sales contract. The seller agrees to deliver merchandise, free of all transportation expense, to the place specified by the contract. Once delivery is complete, the title to all the goods and the risk of damage become the buyer’s.

This is a historical transportation industry term. It deals with who pays the shipping charges on goods produced. The term is a pricing agreement which does not include the carriage charges, from the seller, to the buyer of a product. The seller absorbs the freight charges, the carriage charges, the destination charges, the shipping charges, etc., whatever you wish to call the expense to move the material from the seller to the buyer. There may well be third party billing of these carriage charges. The seller may well have incorporated these charges in the selling price, but does not invoice the buyer for that fee. Remember..."Free On Board," equates to a remembrance thought factor of ..."Free Onto The Buyer"...or F.O.B. as the early traffic managers so coined the term.

Free On Board (FOB) is an Incoterm -- also commonly but incorrectly referred to as "Freight on Board". It means that the seller pays for transportation of the goods to the port of shipment, plus loading costs. The buyer pays freight, insurance, unloading costs and transportation from the port of destination to the factory.