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FOB Incoterm
Free On Board
Group F · main carriage unpaidSea & inland waterway only
FOB: the seller delivers the goods on board the vessel at the port of shipment; risk passes once they're on board. Sea only.
Seller covers
- Export clearance
- Loading on board
Buyer covers
- Sea freight
- Insurance
- Import clearance and duties
Where risk passes
Risk passes once the goods are on board the vessel.
When to use it
For traditional, non-containerised sea cargo.
Common mistake
Using FOB for containers - risk really passes at the terminal, so use FCA.