FOB

How it is used

Written with the port of loading: 'FOB Izmir'. The buyer books and pays the main sea freight and insurance. Only for sea and inland waterway transport; for containers handed over at a terminal, the ICC recommends FCA instead, although FOB is still widely used.

Example sentences

1. Our price is USD 14.20 per unit FOB Mersin.

2. Under FOB, the buyer's forwarder books the vessel and we deliver to the port.

Common collocations

• FOB price
• FOB port of loading
• quote FOB
• FOB value

Related terms

• IncotermsA set of standard three-letter trade terms published by the International Chamber of Commerce that show which costs, risks and tasks belong to the seller and which to the buyer.
• CIFCost, Insurance and Freight: an Incoterms rule in which the seller pays sea freight and minimum insurance to the destination port, but the risk passes to the buyer once the goods are on board at the port of loading.
• FCAFree Carrier: an Incoterms rule in which the seller clears the goods for export and hands them to the buyer's carrier at a named place, where the risk passes to the buyer.
• port of loadingThe port where the goods are loaded onto the vessel at the start of the sea journey; shortened to POL.
• CFRCost and Freight: an Incoterms rule in which the seller pays the sea freight to the destination port, but the risk passes to the buyer when the goods are on board at the port of loading.

This word in other fields

The same English word can have a different meaning in another field:

• FOB · Logistics & Supply Chain

More terms: Incoterms

• EXW
• DAP
• DDP
• CPT
• CIP
• DPU