Definition
An Incoterms 2020 rule for sea and inland waterway transport where the seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment, with risk transferring once loaded. The seller handles export clearance and the buyer arranges and pays for main carriage and insurance. FOB is intended for non-containerised cargo, though it is still commonly used for containers.
Frequently asked questions
What is FOB (Free On Board)?
An Incoterms 2020 rule for sea and inland waterway transport where the seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment, with risk transferring once loaded. The seller handles export clearance and the buyer arranges and pays for main carriage and insurance. FOB is intended for non-containerised cargo, though it is still commonly used for containers.
Which glossary terms are related to FOB (Free On Board)?
FOB (Free On Board) is a documentation term in the South African import/export industry. Related terms in the same area include Air Waybill (AWB), ATA Carnet, Bill of Lading (BoL), Cargo Manifest, Certificate of Conformity — each has its own plain-English definition in the TradeCaravan glossary.