Incoterms 2020
FOB: Free On Board
Deliver the goods on board the vessel, cleared for export. Ocean freight, insurance, import clearance, unloading, and delivery.
FOB at a glance
- Applies to
- Sea and inland waterway only
- Risk transfers to buyer
- When the goods are on board the vessel at the named port of shipment.
- Main carriage paid by
- Buyer
- Insurance
- No party is obliged to insure.
- Export clearance
- Seller
- Import clearance and duties
- Buyer
- Seller handles
- Deliver the goods on board the vessel, cleared for export.
- Buyer handles
- Ocean freight, insurance, import clearance, unloading, and delivery.
- Best for
- Traditional non-containerized sea trade with a clear on-board handoff. For containers, FCA is technically more appropriate.
General guidance only, not legal advice. Your sales contract governs. Based on Incoterms 2020.
FOB questions
Know the term, then track what it costs
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