FOB, or Free on Board, is a term used in the shipping and transportation industry to indicate the point at which ownership of goods transferred from the seller to the buyer. FOB is a shipping term that specifies that the seller is responsible for the goods until they are loaded onto the shipping vessel, at which point the buyer becomes responsible for the goods and any subsequent costs or damages.
In practical terms, FOB means that the seller is responsible for packing, arranging for shipping, and delivering the goods to the loading dock or port, but they are not responsible for any losses or damages that occur after the goods are loaded onto the vessel. The buyer assumes responsibility for all costs and risks associated with shipping the goods to their final destination.
In essence, FOB is a way for buyers and sellers to define their responsibilities and liabilities when it comes to shipping goods. It is often used in international trade as a way to negotiate terms of sale and to specify the point at which ownership of the goods is transferred.
Overall, FOB is an important concept in the industry, as it allows for clear delineation of responsibilities and liabilities between buyers and sellers during the shipping process.
FOB Free on Board
Economy Term
FOB, or Free on Board, is a term used in the shipping and transportation industry to indicate the point at which ownership of goods transferred from the seller to the buyer. FOB is a shipping term that specifies that the seller is responsible for the goods until they are loaded onto the shipping vessel, at which point the buyer becomes responsible for the goods and any subsequent costs or damages.
In practical terms, FOB means that the seller is responsible for packing, arranging for shipping, and delivering the goods to the loading dock or port, but they are not responsible for any losses or damages that occur after the goods are loaded onto the vessel. The buyer assumes responsibility for all costs and risks associated with shipping the goods to their final destination.
In essence, FOB is a way for buyers and sellers to define their responsibilities and liabilities when it comes to shipping goods. It is often used in international trade as a way to negotiate terms of sale and to specify the point at which ownership of the goods is transferred.
Overall, FOB is an important concept in the industry, as it allows for clear delineation of responsibilities and liabilities between buyers and sellers during the shipping process.