This Incoterm, defined by the International Chamber of Commerce (ICC) in their Incoterms 2020 rules, specifies that the seller fulfills their obligation when the goods are loaded onto the vessel nominated by the buyer at the named port of shipment. FOB (Free On Board), which is often called "FOB Shipping Point" or "FOB Port of Shipment," is one of the most used Incoterms in international trade. This guide cuts through the legal jargon and explains everything you need to know about this common incoterm in plain English. The term “FOB” is used in international and freight shipping. The shipping term fob stands “free on board. If you've ever lost or had goods damaged when shipping via waterways, it won't be a surprise to learn that liability, risk, and responsibility are more complex than the rules on land. Fortunately, there is a set of.
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