FOB (Free On Board)

An ocean Incoterm under which the seller is responsible up until the goods are placed on board the vessel at the port of shipment.

• The seller is responsible for: packaging, transport to the port, export formalities, and loading onto the vessel.

• Risk transfers to the buyer as soon as the goods are on board the vessel.

• The buyer is responsible for: ocean freight, insurance, and import duties and formalities.

• Usage: maritime and inland waterway transport only.