Free On Board (FOB) at a named port of export The seller quotes the buyer a price that covers all costs up to and including delivery of goods aboard a vessel at a port FOB is also a method of export valuation
1) A price quotation under which the exporter quotes a price that includes delivery of the goods on board the vessel Subsequent risks and expenses are for the account of the buyer 2) A transaction whereby the seller makes the product available within an agreed-on period at a given port at a given price It is the responsibility of the buyer to arrange for the transportation and insurance
Shipment term that requires the seller of goods to transport them to the dock and to load them onto the vessel
INCOTERM entry Under "F O B " the goods are placed on board the ship by the seller at a port of shipment named in the sales
agreement The risk of loss of or damage to the goods is transferred to the buyer when the goods pass the ship's rail (i E , off the dock and placed on the ship) The
seller pays the cost of loading the goods
This expression follows an exchange point The exchange point indicates the transition of responsibility (risk) from the buyer to the seller See also Terms of Sale For example: F O B Origin The seller agrees to deliver the goods to the point of origin
(i e , the cost of the goods, including the costs of loading, but not including insurance and ongoing freight charges): a method of calculating the value of traded goods FOB is normally applied to exports *see also Free on Board (TradStat Definitions: Terms of Delivery)
Implies that distribution services like transport and handling performed on goods up to the customs frontier (of the economy from which the goods are classed as merchandise ) are included in the price
A pricing term indication that the quoted price includes the cost of loading the goods into transport vessels at the specified place
An Incoterm whereby the seller pays for loading the items to be purchased onto the vessel, but not for the cost of carriage or insurance
The point or location where the ownership title of goods is transferred from the seller to the buyer This indicates that delivery of a shipment will be made on board or into a carrier by the shipper without charge, and is usually followed by a shipping point or destination For example, FOB destination means title passes when the goods reach their destination point
Trade contract terms that specify when title passes to the buyer, typically either when the shipment is initiated or when it is received
Indicates that the seller assumes all responsibilities and costs up to the specific point or stage of delivery named including transportation, packing, insuring, etc A wide variety of f o b terms is used, such as f o b factor Detroit, f o b cars New York, f o b ship Norfolk 'Free on board vessel,' under most P L 480 grain contracts, means delivery at the discharge end of the loading spout
Commercial term under which the seller's obligations are fulfilled when the goods reach a point specified in the contract For example, "F O B , Seller's Warehouse" means that the buyer assumes all costs and risks in moving the goods from the seller's warehouse
Implies that distributive services like transport and handling performed on goods up to the customs frontier of the economy from which the goods are classed as merchandise
Common price term used in international trade meaning seller's responsible for the cost of goods is to the point of loading it to the vessel deck or aircraft loading deck The risk of loss of or damage to the goods is transferred from the seller to the buyer when the goods have been so delivered FOB normally comes with port of loading either airport or sea port » Back to top of screen
The seller delivers when the goods pass the ship's rail at the at the named port of shipment This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point The FOB term requires the seller to clear the goods for export This term can only be used for sea or inland waterway transport If the parties do not intend to deliver the goods across the ship's rail, the FCA term should be used
(Ticaret) (FOB) Trade contract terms that specify when title passes to the buyer, typically either when the shipment is initiated or when it is received
Without charge to the purchaser for delivery on board or into a carrier at a specified point or location
When the selling price of a good does not include transportation costs (freight, insurance) The buyer pays for those costs separately The risk of loss or damage to the goods in transport is borne by the buyer or the buyer's insurance company