FOB is an Incoterm for sea freight under which the seller delivers the goods cleared for export and loaded on board the vessel at the named origin port. From that moment, cost and risk transfer to the buyer, who arranges and pays for the main carriage, insurance and import formalities.
FOB is one of the most used terms in international trade, notably on Asia–Europe and Asia–US flows where buyers want control of the ocean leg. For containers delivered to a terminal rather than on board, FCA is the recommended alternative.
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