The terminology FOB on International trade

FOB (Free On Board), also known as shipping on board, is one of the commonly used trade terms in international trade. For transactions on FOB, the buyer is responsible for dispatching the goods to be picked up by the ship. The seller shall load the goods on the vessel designated by the buyer within the contracted port of shipment and within the stipulated time limit and notify the buyer promptly. When the goods are loaded on the designated ship at the port of shipment, the risk is transferred from the seller to the buyer.