FOB Free On Board
FOB, or Free On Board, means Party A delivers the goods on board the vessel nominated by Party B at the named port of shipment. Party A handles export clearance and loading onto the vessel, while Party B takes responsibility for ocean freight, insurance if needed, import clearance, duties, taxes and final delivery after the goods are on board.
Party Definition
For this FOB trade term page, the parties are defined as follows:
Responsibility Summary
Under FOB, Party A’s responsibility is completed when the goods are loaded on board the vessel at the named port of shipment. Risk usually transfers to Party B once the goods are on board.
| Item | Party A (Manufacturer / Seller) | Party B (Buyer / Purchaser) |
|---|---|---|
| Goods Preparation | Prepare goods according to confirmed order details. | Confirm product model, quantity, finish, packing and delivery requirements. |
| Export Clearance | Handle export clearance under standard FOB. | Provide buyer, vessel or forwarder information when needed. |
| Delivery to Port | Arrange delivery of goods to the named port of shipment. | Nominate the vessel, shipping schedule and forwarder if applicable. |
| Loading on Vessel | Responsible for loading the goods on board the nominated vessel. | Risk usually transfers after the goods are loaded on board. |
| Ocean Freight | Not responsible for ocean freight under standard FOB. | Arrange and pay for ocean freight from the port of shipment. |
| Insurance | Not required to provide cargo insurance under standard FOB. | Arrange cargo insurance if insurance protection is required. |
| Import Clearance | Not responsible for import clearance at destination. | Responsible for import clearance, duties, taxes and local charges. |
| Final Delivery | Not responsible for final destination delivery unless agreed in writing. | Arrange destination port handling, inland transport and final delivery. |
Party A Responsibilities
Party B Responsibilities
When FOB Is Suitable
FOB is usually suitable for sea freight orders when Party B has its own freight forwarder, shipping route or destination-side logistics arrangement.
FOB is often used when Party B wants Party A to handle export clearance and loading on board, while Party B controls ocean freight, insurance and import-side costs. If Party B wants Party A to pay freight to the destination port, CFR or CIF may be discussed.
Need FOB Quotation for Bathroom Products?
Send your product models, quantity, destination country and preferred port of shipment. Aqvia Bath can help review whether FOB is suitable for your bathroom product order.