INCOTERMS DELIVERY & RISK POINTS
Free on Board (FOB)
Under Incoterms® Free on Board, the seller delivers goods on board the buyer-nominated vessel at the named port of shipment. Risk transfers at that delivery point under the rule.
FREE ON BOARD IN PRACTICE
- Specify the frameworkName the port and Incoterms version.
- Check the handoffMatch the actual delivery point to the rule.
- Allocate remaining termsDocument freight, clearance and sale conditions.
Use the agreed units, actual records and approved procedures for your operation.
A WORKED EXAMPLE
Terminal receipt is not on-board delivery.
A seller hands a container to a terminal before vessel loading. The parties review the agreed rule because that physical handoff differs from FOB’s on-board delivery point. They do not assume a dock receipt alone proves the relevant FOB milestone.
WHAT THIS MEANS FOR YOUR QUOTE
Agree the requirement before comparing quotes
Use the actual shipment, stock and service requirements. Record the billing unit, included work and responsibility for exceptions.
A LITTLE MORE CONTEXT
Questions about Free on Board
Does Incoterms FOB apply to air freight?
No. It is a sea and inland-waterway rule.
Does FOB automatically transfer title?
No. Address ownership separately.
Is terminal receipt always FOB delivery?
No. FOB delivery is on board the vessel.
Source & example notes
ICC Academy: FCA and FOB compared.
Sources provide background on the linked topic. Product documentation describes a particular implementation; confirm the rules, contract and procedures that apply to your operation.
Quantities, costs and scenarios are illustrative, not operating targets, approved handling instructions or guarantees. Source guidance reviewed 22 October 2026.
Last updated: · 3PL Hub
