F O B Meaning and
Definition
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F O B is an acronym that stands for "Free On Board." It is a shipping and trading term used in international commerce to determine the point at which the buyer assumes the responsibility and cost for goods being transported. In essence, F O B indicates the location or the point of delivery where the seller's responsibility for the goods ceases and the buyer's responsibility begins.
In F O B terms, the seller is responsible for all costs and risks associated with delivering the goods to a specified location, usually a port or an airport named by the buyer. Once the goods are on board the carrier or vessel at the agreed location, the ownership and liability are then transferred to the buyer. At this point, the buyer is responsible for any further transportation costs, insurance, and potential damage or loss of the goods.
F O B terms are commonly used in international trade contracts and agreements, particularly in the sale of goods that involve overseas shipment. It helps define the boundaries of responsibility and liability between the buyer and seller, ensuring clear expectations regarding the transfer of ownership and cost obligations.
In summary, F O B is a shipping and trading term that indicates the point at which the seller's responsibility for the goods ends and the buyer assumes ownership, liability, and associated costs of transporting the goods to their final destination.
Similar spelling words for F O B
- bob,
- fog,
- job,
- rob,
- mob,
- cob,
- feb.,
- for,
- fib,
- fox,
- foe,
- sob.
