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.