Documents & Incoterms
Free on Board (FOB)
Definition
An Incoterms rule for sea or inland-waterway transport under which the seller delivers goods on board the buyer-nominated vessel at the named port.
In practical terms
Risk transfers when the goods are on board. FOB is intended for port-to-port water transport and is often unsuitable when goods are handed over at a container terminal before vessel loading.
Example
Bulk cargo is placed on board the nominated vessel at the named export port.