Free On Board (FOB)

Dictionary of Accounting Terms for: Free On Board (FOB)
Free On Board (FOB)

term indicating delivery will be made on board or into a carrier by the shipper without charge. The abbreviation FOB is followed by a shipping point or destination. The invoice price includes delivery at seller’s expense and seller’s risk to the specified location. For example, “FOB our warehouse in Duluth, Minnesota,” means to a buyer requesting New York City delivery that the seller who might have its headquarters and billing office in Chicago, will pay shipping costs from Duluth to New York. Title usually passes from seller to buyer at the FOB point.

Dictionary of Business Terms for: Free On Board (FOB)
Free On Board (FOB)

transportation term meaning that the invoiceprice includes delivery at the seller’s expense to a specified point and no further. For example, “FOB our Newark warehouse” means that the buyer must pay all shipping and other charges associated with transporting the merchandise from the seller’s warehouse in Newark to the buyer’s receiving point. Title normally passes from seller to buyer at the FOB point by way of a bill of lading.

Dictionary of Finance and Investment Terms for: Free On Board (FOB)
Free On Board (FOB)

transportation term meaning that the invoice price includes delivery at the seller’s expense to a specified point and no further. For example, “FOB our Newark warehouse” means that the buyer must pay all shipping and other charges associated with transporting the merchandise from the seller’s warehouse in Newark to the buyer’s receiving point. Title normally passes from seller to buyer at the FOB point by way of a bill of lading.

Dictionary of Insurance Terms for: Free On Board (FOB)
Free On Board (FOB)

term meaning that an exporter of goods that are damaged or destroyed during international shipment relinquishes responsibility for the damage or destruction once the goods reach the point of destination.

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