Free on Board

Embassy Logistic Terms: Free on Board

FOB or Free on Board, (agreed port of departure).
The transfer of costs will occur after placing the goods on board of the ship in the port of departure or after the goods are loaded. The transfer of risks also takes place at that time, in other words, the critical point of costs is equal to the critical point of risk transfer.
The seller has fulfilled his obligation to deliver when the goods are placed / loaded on board of the (by the buyer) nominated and named vessel at the port of departure.

The ship’s rail, traditionally a symbolic barrier between the seller and buyer, has been abolished.

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