Free On Board: the seller loads the goods on the ship; the buyer pays freight and insurance.
Risk passes once goods are on board at the port of shipment. Many Indian export prices are quoted FOB.
Related terms
- CIF — Cost, Insurance and Freight: the seller pays freight and insurance to the destination port.
- FCA — Free Carrier: the seller hands export-cleared goods to the buyer’s carrier at a named place.
- Incoterms — Eleven standard trade terms (2020 edition) that say who pays for what and when risk passes.