ICC Incoterms 2020 - International Commercial Terms
Rules for sea and inland waterway transport (FAS, FOB, CFR, CIF) – ICC Incoterms 2020 - International Commercial Terms

ICC Incoterms 2020 - International Commercial Terms FOB: Free on Board (insert named port of shipment)

What does FOB require?

Delivery happens when the seller loads the goods aboard the ship the buyer has nominated at the port of shipment named in the term, or buys goods already delivered that way; from that point risk and all costs pass to the buyer. Export clearance, where needed, is the seller's job, but not for transit or import, and provides the usual proof of delivery. The buyer books carriage from the named port, nominates the ship and tells the seller the vessel name, loading point and delivery time, pays freight and the transit and import formalities and duties, and carries the extra costs and risk if the ship arrives late, cannot load the goods or stops accepting cargo early, as long as the goods have been identified as the contract goods. FOB does not suit goods given to a carrier before they are aboard, for example at a container terminal; FCA should be used there.

Maintained by Gerard BlokdykControl text last updated

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