Free on Board

The most common term for ocean imports from Asia. The buyer controls the forwarder and ocean freight.

Who pays freight under FOB terms?

Under FOB, the seller pays costs to load goods on board the vessel at the named origin port, and the buyer pays ocean freight, insurance, and all destination costs. Risk transfers to the buyer once goods are on board.

• IncotermsStandard trade terms published by the International Chamber of Commerce that define which party pays for and bears risk in each leg of an international shipment.
• Ex WorksAn Incoterm where the seller only makes goods available at its own premises and the buyer handles all transport, export clearance, and risk.