Tuesday, February 19, 2008
FOB / Free on Board
Under the Incoterm standard, FOB stands for "Free On Board". Indicating "FOB" means that the seller pays for transportation of the goods to the port of shipment, plus loading costs. The buyer pays freight, insurance, unloading costs and transportation from the arrival port to the final destination. The passing of risks occurs when the goods pass the ship's rail at the port of shipment. Internationally the term specifies the port of loading; e.g., "FOB
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