FOB trade term means Free on Board
When is Delivery Completed?
Seller is deemed to have delivered when the goods are loaded on board the ship nominated by the buyer at the named port of shipment.
What is the Seller’s Obligation?
Seller is required to clear goods for export, where applicable.
When does Buyer Risk and Obligation start?
Buyer has to bear all costs and risks of loss of or damage to goods from that moment onwards after the goods are loaded on board the ship at the named port of shipment.
Not appropriate to use in containerised shipment where, goods are handed over to the carrier at a terminal. The FCA rule should be used.
Neither party is obligated to arrange for insurance. However, in LC transactions, buyer will be required by his bank to arrange for insurance.