About Freight On Board

To understand the importance of the freight on board or FOB, we must first understand actually what dose Freight On Board stands for. The freight on board actual means is free on board or cargo on board. In simple terms, the FOB is a term used to indicate where the product property transferred from the seller to the buyer. Freight on board provides details about who (buyer or seller) will pay for the cost of shipping goods. The definition of FOB varies from region to region.


The destination of freight on board specifies that the charges of freight are given by seller and responsible for goods in transit. The buyer is responsible for the goods on entrance at the destination. Freight on board destination prepaid and additional is the same, unless the seller is shipping free to the buyer.


Freight on board port of origin shows that the freight is paid by the seller – the buyer is responsible for the load during transport. Dock and Delivery FOB shipping to suggest that the combined traffic in the price of goods. The buyer is responsible to take liability at the same time when the goods are received.


The party is responsible for the goods during transport for filing a complaint to the carrier when the goods are lost, damaged or stolen in transit. According to the Uniform Commercial Code of freight on board, if the FOB is not specified in the contract, the goods will be shipped FOB origin. Therefore, the buyer would be responsible for the transit of goods.

North American Standards

U.S. and Canada loading on board is the term used frequently. The Foreign Trade Definitions, 1941 is formulated, the source / origin of this term. It is very necessary to understand the meaning of terms, FOB destination, FOB Shipping Point and North American standards to understand. FOB shipping point means is the buyer of the assets of the supplier of the institutions on its own. It also increases the cost transportation.  FOB Origin is the term that can be used as a substitute for the FOB shipping point. The significance of the FOB destination is opposite to the FOB origin, which means that the seller for the transportation paid for and is responsible for the goods until it reaches the buyers. Learn more about the cargo. In the case of ports, buyers assume the responsibility if the goods are loaded on the ship. FOB in the cities means that the buyers of the products are provider again with cowards.

Other FOB Terms

The acronym FOB is used for many other terms such as Federal Office Building, operational base, fresh off the boat, etc. FOB New York appears to be one of the historic sites in the United States. The length of the base of operations is a term used in military operations. FOB in this case is a safe and forward, useful to support tactical operations. Information about what FOB and their use in different contexts is described in the preceding article. Therefore, it helps to get relevant information on FOB.

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