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Free on Board

The seller delivers goods onto the vessel; the buyer carries cost and risk from there.

Area
Logistics & Trade
Abbreviation
FOB
Also known as
FOB port
In this area
23 terms of 257

Under FOB the seller is responsible for the goods, export clearance and loading at the named port of shipment. Once loaded, freight, insurance, import duty and clearance are all the buyer’s.

FOB pricing gives the buyer control over shipping — useful if you have better freight rates than your supplier — but it also means the whole landed cost calculation is yours to do.

Free on Board is not just a definition here

Logistics & Trade runs on this vocabulary every day in AWRA OpsHub — 23 of our 257 glossary terms describe things the platform actually does.