Incoterms 2010: What is the meaning of the incoterm Free On Board?

What is the Meaning of Free On Board? (FOB)

“Free On Board” or FOB is one of the 11 official incoterms used in international shipping. This term means that the seller is responsible for delivering the goods to the port of departure. At this point, the buyer assumes responsibility.

FOB Shipping - What Transport Mode Can Free On Board Be Used With?

FOB is restricted to transport via sea or inland waterway, meaning that this specific incoterm has no use for an air cargo shipment.

Shipping Terms - How Does Free On Board Work?

The seller is responsible for delivering the cargo to the nearest port under the incoterm “Free On Board”. The buyer however, is responsible for the costs associated with the transportation from the origin port to the final destination. This includes any other fees which may be payable from that point onwards such as customs clearance at destination, customs duties and taxes at destination and inland haulage at destination.

FOB Overview

Once the goods have been loaded onto the vessel, risk transfers to the buyer, who bears all costs from thereafter.

FOB is restricted to transport via sea or inland waterway.

Free On Board has many similarities to Free Alongside Ship (FAS) but they should not be confused.

If you are looking at shipping containerised goods, consider Free Carrier (FCA) as an alternative.

If you have any questions regarding the use of “Free On Board” or any other incoterm, please feel free to contact our team on 0113 250 1155 or email us at: sales@tudorfreight.com

Industry Specific Guidance and Logistics Advice

Manufacturing

Tudor International Freight manage the supply chain movements of many large international manufacturing companies. Our team appreciate the complex issues and unique logistical challenges facing this sector.

Oil and Gas

We have been providing logistics services to the oil and gas industry for many years. Our specialist team have worked on many projects across the world and understand the demands of this sector more than most.

Exhibitions and Events

When fast reactions and quick solutions are required, you can count on Tudor International Freight to provide a dedicated team and exceptional service to help make your event a resounding success.

Aerospace

Tudor International Freight provide a wide range of supply chain solutions to the aerospace sector. Our staff are familiar with industry terms and jargon – we understand and speak your language.

Chemicals

The chemical goods industry has experienced significant changes over recent years with a much larger emphasis being placed on logistics compliance and regulation. Tudor provide businesses with specialist chemical logistics advice and guidance.