FOB

FOB (Free On Board) is a maritime-only Incoterm where the seller fulfils their obligation by delivering the goods on board the named vessel at the named load port. From that moment, the buyer is responsible for: freight to destination, insurance, customs at destination, and bears all risk of loss or damage.

FOB is the most common Incoterm in maritime trade, especially for commodities. The named port should be specific (e.g., "FOB Shanghai"). FOB has been increasingly criticised for misuse in containerised trade where the seller actually delivers to the terminal, not the ship — for which FCA (Free Carrier) is more accurate.