What Is FOB In Shipping? – Let’s Find Out

FOB, or Free On Board, is a shipping term that determines when ownership and liability for goods shift between the buyer and seller.

FOB Origin places the responsibility on the buyer for shipping, while FOB Destination keeps it with the seller until the goods reach their final location.

FOB Origin & Destination

FOB affects various aspects of product delivery, including inventory, shipping, and insurance.

FOB pricing impacts accounting systems, and the timing of ownership transfer affects when a sale is recorded.

FOB Pricing Impacts

The FOB law, defined by the International Chamber of Commerce, has a global reach, originating from a time when goods were transported by ships.