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FOB Free on Board: The Leap of Faith
FOB Free on Board is a shipping incoterm with the features of Named Place Requirement: Port of Shipment. Think of a daring leap from a pier onto a waiting ship. That’s the spirit of FOB, where the seller’s obligation ends when the goods pass the ship’s rail at the agreed port of shipment. This term, dating back to British maritime law, is one of the oldest and most commonly used Incoterms. It’s a testament to the enduring influence of seafaring on global trade.
Seller’s Obligations:
Deliver the goods on board the vessel at the named port of shipment.
Clear the goods for export.
Buyer’s Obligations:
Arrange and pay for sea freight.
Clear the goods for import, paying any customs duties.
Read FOB term in Wikipedia or inquire us for cargo booking and the newest prices.
FOB instance:
When it comes to importing goods from China, you will find a shipping price offered by a forwarder in China is always based on a specific incoterm and a city. Like below:
FOB Shenzhen Port
You book shipping space loading at Shenzhen Port
Your supplier handles the inland delivery to Shenzhen Port
Your supplier handles Customs export declaration
Your supplier pays all cost at the Shenzhen Port until departure
You pay the shipping cost to get the B/L
You pay all cost after the cargo leaves
As an importer, you need to pay sea freight charges, destination port charges, Customs, VAT, tariffs and duties and inland transportation to your door or warehouse.
