FOB (Free On Board)
An Incoterm where the seller delivers goods onboard the vessel and the buyer assumes cost and risk from that point.
FOB means the seller is responsible for the goods until they are loaded onto the ship at the named port of origin. After that, the buyer pays for freight, insurance, and bears the risk.
FOB (Free On Board) is one of the most widely used Incoterms in international trade. Under FOB terms, the seller handles export clearance and delivers the goods over the ship’s rail at the agreed port of shipment. Once the cargo is onboard, responsibility transfers to the buyer.
For overseas buyers sourcing from China, FOB is common because it gives you control over the main freight leg, letting you choose your own forwarder and negotiate ocean rates directly. You will typically see quotes like “FOB Shenzhen” or “FOB Shanghai,” meaning the price covers everything up to loading at that port.
Compare FOB with EXW (where you collect from the factory) and CIF (where the seller also pays freight and insurance to your destination port).