Description
Free On Board (FOB) is a trade term meaning delivery on board (designated port of loading). It stipulates that the seller fulfills the delivery obligation when the goods are handed over to the ship designated by the buyer at the designated loading port. This means that the buyer shall bear all risks and expenses of the goods after crossing the ship's rail.
Here are some key points of FOB terms:
- When the risk transfer goods cross the ship's rail: the risk is transferred from the seller to the buyer
- Delivery location: On board the ship at the loading port
- The seller is obligated to deliver the goods onto the ship and provide relevant documents
- The buyer is obligated to rent a ship, book a cargo space, pay the freight, and bear the costs and risks of the goods crossing the ship's rail
As Quanzhou Zhenhao Stone Industrial Co., Ltd mostly provides FOB Shipping Terms for our clients for International Markets, please understand those situation when working with us, thank you for your time.
It should be noted that the interpretation of FOB in the 1941 Revised US Foreign Trade Definition differs from other international conventions, particularly in terms of risk allocation and cost burden. Therefore, when signing FOB contracts with American or Canadian merchants, the word "Vessel" should be clearly marked to avoid misunderstanding.
