FOB, or Free On Board, is an Incoterm that sets where responsibility passes from seller to buyer in an ocean shipment. Under FOB, the seller delivers the goods on board the vessel at the named port of loading and covers everything to that point, including export clearance. Once the cargo is on board, risk and cost transfer to the buyer, who pays the ocean freight, insurance, and onward charges.
FOB is one of the most common terms in international trade because it splits duties at a clear point, the ship’s rail at origin. Buyers who control the main carriage often prefer it. Texas International Freight handles either side of an FOB move and explains the shipping terms before you book.
