What Does FOB Mean?FOB Comprehensive Guide
1. What Does FOB Mean? FOB stands for Free On Board , a legal term codified under the Incoterms® 2020 rules by the International Chamber of Commerce ( ICC ). It applies exclusively to sea or inland waterway transport. Core Meaning: The seller fulfills its obligation to load the goods safely onto the vessel at the designated port of shipment.After this point, all risks and costs transfer to the buyer . Historical Context: FOB originated in 19th-century British maritime law, where goods were considered “free” of seller responsibility once placed on board. Modern Incoterms® have standardized its global interpretation. The Incoterms® Rules are protected by copyright owned by ICC. Further information on the Incoterms® Rules may be obtained from the ICC website iccwbo.org 2. What is FOB Price? FOB Calculation FOB price meaning refers to the total cost incurred by the seller to deliver goods onto the vessel. It does NOT include ocea...