FOBSea & Inland Waterway OnlyIncoterms® 2020
Free on Board
- Seller's Responsibility
- Deliver goods on board the vessel at named port. Export clearance. Loading costs.
- Buyer's Responsibility
- Main sea freight, insurance, import clearance, duties.
- Risk Transfer Point
- When goods are on board the vessel at port of shipment.
- Cost Transfer Point
- At port of shipment, once loaded on board.
- Insurance Obligation
- No obligation on either party.
- Export Clearance
- Seller.
- Import Clearance
- Buyer.
Best For
Sea freight where buyer wants to arrange their own shipping and insurance. Very commonly used in international trade.
Watch Out
Sea and inland waterway ONLY. Despite being widely used, FOB is technically incorrect for containerised cargo — risk should transfer at the container terminal, not on board the vessel. ICC recommends FCA for containers.