FOB (Free On Board) Shipping: Benefits, Terms, & Pitfalls
Posted: Wed Feb 12, 2025 6:08 am
FOB shipping which stands for ‘Free on Board’ shipping, is one of the incoterms (International Commercial Terms) designed by the International Chamber of Commerce (ICC) for international trade, shipping, and transporting of goods. It indicates the liability for goods if they are damaged, lost, or destroyed during international transportation.
These incoterms help buyers and sellers avoid misunderstandings and disputes to achieve transparency using standardised contract terms.
FOB shipping states that either the buyer or the seller is responsible for goods that are destroyed, damaged, or lost during the transition. The cost and the risk involved in the FOB shipment are transferred to the buyer when goods senegal phone number list are on board at a shipping port. In a nutshell, the term FOB indicates the shipping party that will be liable for the damaged goods during the transit as well as for the cost of freight and insurance.
FOB (Free On Board) Shipping
How Is FOB Shipping Beneficial For Buyers & Sellers?
The FOB is not only one of the most common incoterms, but it also has some benefits to the shipping process. It is the most cost-effective method of shipping goods internationally.
These incoterms help buyers and sellers avoid misunderstandings and disputes to achieve transparency using standardised contract terms.
FOB shipping states that either the buyer or the seller is responsible for goods that are destroyed, damaged, or lost during the transition. The cost and the risk involved in the FOB shipment are transferred to the buyer when goods senegal phone number list are on board at a shipping port. In a nutshell, the term FOB indicates the shipping party that will be liable for the damaged goods during the transit as well as for the cost of freight and insurance.
FOB (Free On Board) Shipping
How Is FOB Shipping Beneficial For Buyers & Sellers?
The FOB is not only one of the most common incoterms, but it also has some benefits to the shipping process. It is the most cost-effective method of shipping goods internationally.