FOB
Also known as: Free On Board
An Incoterm where the seller delivers goods loaded onto the vessel at the origin port; risk and cost transfer there.
FOB (Free On Board) is a maritime-only Incoterm 2020 rule. The seller delivers the goods on board the vessel at the named origin port and pays all costs and risks up to that point including export clearance. The buyer then takes over cost and risk from on-board loading: ocean freight, insurance, import clearance, destination delivery. FOB is the standard term for commodity and bulk maritime trade — especially common in container-trade buyer-arranges-freight arrangements.