What Does FOB Mean in Shipping?

FOB, or Free On Board, is a designation used in shipping. It indicates the point at which ownership and liability for the shipped goods transfer from the seller to the buyer. This transfer occurs when the goods are on board the truck.

The FOB logistics is driven by the Incoterm agreed upon by the seller and buyer, and it decides who handles the cost of the freight. FOB in shipping can play a significant role in determining the terms of a shipping contract and the responsibilities of each party.

Filters
Filter
Filters
Loading location
Unoading location