fob full form

FOB Full Form:

FOB stands for “Free On Board.”

Key Points:

  • Shipping Terms: FOB is a term used in shipping and logistics to indicate when responsibility and ownership of goods transfer from the seller to the buyer.

  • Usage: It is commonly used in international trade contracts and agreements.

  • Variations:

  • FOB Origin: The buyer assumes responsibility for the goods once they leave the seller’s premises.
  • FOB Destination: The seller retains responsibility until the goods reach the buyer’s location.

  • Importance:

  • Helps determine shipping costs.
  • Clarifies liability and risk during transportation.

Understanding the term FOB is crucial for businesses involved in importing and exporting goods, as it affects both legal and financial aspects of shipping.