Quick Notes Incoterms – FOB – Free on Board … (Port of Shipment)

FOB – Free on Board … (Port of Shipment) • The seller clear the goods for exports and delivers when the goods have passed the ship’s rail at the agreed port. • Only used for water transportation either sea or inland water. If both parties do not agree to have goods delivered on board, then FCA is the term to be used. • Commonly used when commodities were sold and carrier confirmed the reception of goods “on board”. • When goods are packed in contenerized cargo, then FCA is the most recommended term to use. Because goods will be delivered in the container terminal prior to be loaded on the vessel. • The term is used in commodities like oil, bulk cargo or grain. • In FOB, origin terminal handling charge and all other cost associated to move the goods on board are paid by the seller.