Daily Point 2113 - FOB – Free on Board

 

The Banking Tutor

                            Daily Point 2113

                       FOB – Free on Board

 

This is one of the Incoterms . Under FOB terms the seller bears all costs and risks up to the point the goods are loaded on board the vessel.  FOB contract requires a seller to deliver goods on board a vessel that is to be designated by the buyer in a manner customary at the particular port. In this case, the seller must also arrange for export clearance. On the other hand, the buyer pays cost of marine freight transportation, bill of lading fees, insurance, unloading and transportation cost from the arrival port to destination.

Sekhar Pariti

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