FOB: Free On Board

By Mohamed Omer, Chairman & Chief Executive Officer, Mooventory Global · Sea & inland waterway

The seller loads goods on board the vessel at the named port of shipment, cleared for export.

Where risk transfers

When goods are on board the vessel at the port of loading.

When to use FOB

Bulk and conventional sea cargo where the buyer nominates the ship.

Watch out for

Widely misused for containers. The container is handed over at the terminal days before loading, so FCA fits better.

FOB for Africa trade

Many African buyers quote FOB China by habit. Using FCA for containers gives clearer risk control.