Sea and inland waterway
FOB
Free On Board
The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment.
WHO DOES WHAT — 8 STAGES
SELLER
Load the goods on board the buyer’s vessel
Complete export clearance
Provide proof of delivery on board
BUYER
Nominate the vessel and contract sea freight
Bear risk once the goods are on board
Complete import clearance and pay duties
KEY FACTS
Risk, cost and paperwork at a glance.
RISK TRANSFERS
When the goods are on board the vessel at the port of shipment.
COST TRANSFERS
On board the vessel at the named port of shipment.
INSURANCE
No obligation for either party.
EXPORT CLEARANCE
Seller
IMPORT CLEARANCE
Buyer
IN PRACTICE
When to use it, and when not to
FOB is widely used for containers, but containers are usually handed to the carrier at the terminal days before loading. For containerised cargo, FCA matches the real handover more closely.
Educational summary of the Incoterms® 2020 rules, not legal advice. Incoterms® is a trademark of the International Chamber of Commerce; check the official ICC text and take professional advice for contracts.
GUIDE
Incoterms® 2020, explained in full
ALL RULES
The other ten rules
AGREED THE TERMS?