← All rulesFOB
Free on Board
Group F · Main carriage unpaid · Sea & inland waterway only
The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment, cleared for export. From that moment the buyer bears all cost and risk.
Where risk transfers
When the goods are placed on board the vessel at the named port of shipment.
Seller's cost & riskBuyer's cost & risk
Seller pays
- ▪Packaging
- ▪Export clearance
- ▪Inland carriage to port
- ▪Loading on board
Buyer pays
- ▪Ocean freight
- ▪Insurance
- ▪Discharge
- ▪Import clearance and duties
Insurance
No obligation on either side.
Customs
Export clearance: Seller
Import clearance: Buyer
Use it when
Bulk cargo and conventional vessel shipments where the buyer nominates the ship.
Watch out
The most misused rule in world trade. For containers, delivery happens at the terminal days before loading — FCA reflects reality, FOB does not.