FOB (Free on Board)

FOB (Free on Board) is an Incoterm that places the responsibility on the seller to clear the goods for export, transport them to the designated ocean vessel, and load them on board. The transfer of cost and risk occurs once the goods have passed the ship’s rail. It's important to note that FOB is best suited for shipments where goods move directly from the seller’s premises to the vessel for ocean transport. For LCL (Less than Container Load) and other containerized shipments that are delivered to a carrier at a Container Freight Station (CFS) or Container Yard, FCA (Free Carrier) is a more appropriate Incoterm.