Free On Board (FOB) Definition | Business Dictionaries from AllBusiness.com
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Business Definition 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.

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.

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 .

See also Free Alongside Ship (FAS)
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.

Copyright © 2005, 2000, 1995, 1987 by Barron's Educational Series, Inc., Reprinted by arrangement with Publisher.
Copyright © 2006, 2003, 1998, 1995, 1991, 1987, 1985 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2000, 1995, 1991, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

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