Glossary
Free On-Board (FOB)
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A point where the responsibility of product shifts from buyer to the seller.
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What is Free On-Board (FOB)?
Free On-Board (FOB) is a term used in logistics and shipping that indicates when ownership of the goods is transferred from the seller to the buyer. The acronym FOB stands for “Free on Board” or “Freight on Board.”
The term FOB is used to indicate who pays the transportation cost and who is responsible for the goods once they are shipped. The term is generally used in international trade and when goods are shipped by sea.
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