Logistics terms · Logistics terms
What does FOB (Free On Board) mean in logistics?
Short answer
Incoterm for sea and inland waterway: the seller clears the goods for export and loads them on board the vessel nominated by the buyer at the named port, where risk passes. The buyer pays the ocean freight.
The most widely quoted export term in India, although for containers FCA fits better because the exporter loses control of the box at the terminal gate, before it goes on board. Ask our desk how this applies to your consignment.
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The numbers behind this answer
- Also called
- FOB
- Category
- EXIM & customs
- Related terms
- FCA (Free Carrier), CFR (Cost and Freight), Bill of lading (B/L), Incoterms 2020
Related questions
- What does Bill of lading (B/L) mean in logistics?
- What does CFR (Cost and Freight) mean in logistics?
- What does FAS (Free Alongside Ship) mean in logistics?
- What does FCA (Free Carrier) mean in logistics?
- What does Incoterms 2020 mean in logistics?
- What does CIP (Carriage and Insurance Paid To) mean in logistics?
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