Free on Board (FOB)

Free on Board is an incoterm used to refer to a shipping arrangement wherein the seller is responsible for all origin charges, including loading the goods onto the vessel.

What is Free on Board (FOB) ?
Free on Board is an incoterm used to describe an arrangement in which the seller is required to deliver and board the goods on the vessel at the port named by the buyer. The buyer then becomes responsible for all freight charges and risks until the goods reach the final destination.