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Free on Board FOB

Terms for sea and inland waterways

Free On Board FOB named port of shipment Incoterms® 2010 - There is a significant change from the meaning of this term in former revisions of Incoterms: transfer of risk does not happen at the moment when goods cross the ship's rail.

The seller delivers the goods on a ship nominated by the buyer at the named port of shipment or procures goods already delivered there. Risk of loss or damage passes when the goods are resting on or in the vessel, not when they are hanging from a crane or being handled over the ship's side.

If goods are passed to a carrier before being loaded on a ship, as goods in containers are received by a carrier at an inland container terminal, FCA should be used. (read more)