“FOB” usually means Free On Board. It is a shipping term that shows when responsibility for goods moves from the seller to the buyer. In simple words, it tells who is responsible for the items at different points in the shipping process.
People use FOB most often in business, trade, and shipping. For example, it can show whether the seller pays for delivery up to a certain point, or whether the buyer takes over once the goods are loaded onto a ship. In everyday use, it helps both sides understand who handles the cost and risk.
Meaning & Usage
FOB is used in contracts, invoices, and shipping documents. It helps avoid confusion by making it clear when ownership or responsibility changes hands.
Examples
If a contract says FOB shipping point, the buyer becomes responsible once the goods leave the seller’s location. If it says FOB destination, the seller stays responsible until the goods arrive.
What does FOB stand for?
FOB stands for Free On Board.
Why is FOB important?
It shows who is responsible for shipping costs, risk, and delivery at each stage.
Where is FOB used?
FOB is commonly used in shipping, trade, and business contracts.
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