FOB — Free On Board
Seller delivers the goods on board the vessel. Buyer pays the sea freight onward.
FOBFree On BoardSea freight only
Where risk transfers
When the goods are placed on board the vessel at the named port of shipment.
Mode: sea and inland waterway only
Who pays what
| Export customs | Seller |
| Origin carriage | Seller |
| Main freight | Buyer |
| Insurance | Either (optional) |
| Import customs | Buyer |
| Duties & taxes | Buyer |
| Delivery to place | Buyer |
Obligations
Seller
- •Clear for export
- •Deliver the goods on board the nominated vessel
Buyer
- •Book and pay the main sea freight
- •Carry the risk once goods are on board
- •Clear for import and pay duties
Watch out
Sea/inland waterway only. Widely (mis)used for containers — because the carrier takes containers at a terminal before loading, FCA fits container shipments better.
More terms
Frequently asked questions
What does FOB mean in Incoterms 2020?
FOB stands for Free On Board. Seller delivers the goods on board the vessel. Buyer pays the sea freight onward. Risk transfers when the goods are placed on board the vessel at the named port of shipment.
Who pays for the main freight under FOB?
The buyer pays the main carriage under FOB.