Supply Chain Glossary

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FOB


Source: Procurement Glossary
Author: Paul Rogers
Institute: CIPS - UK

Courtesy of


 

An Incoterm meaning ‘free on board’ (named port of shipment) where the seller delivers the goods on board a ship nominated by the buyer, and clears the goods for export, but the buyer is responsible for all subsequent costs and risks.  It is recommended for use only for maritime and inland waterway transport. The term FCA is preferred for multimodal sea transport in containers.  See also Incoterms.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




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