Free on board

FOB (Free on Board) is one of the four Incoterms 2020 sea-and-inland-waterway rules. The seller delivers when the goods are placed on board the vessel nominated by the buyer at the named port of shipment, and risk passes at that point. FOB suits bulk and break-bulk shipments where the seller controls loading; for containers handed to a carrier before vessel loading, ICC recommends FCA instead, since the seller otherwise retains risk after losing control of the box at the terminal.