Trade · 6 pages · 12 min
Why FOB is a place not a vibe
FOB names a port where goods go on board and risk passes, not a mood about who is helpful.
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From the opening
FOB is free on board followed by a named port of shipment. It is a place because the port is where the seller's delivery duty ends and, under the sea-freight Incoterm, where risk passes once the goods are on the vessel. The opening covers the named port is the place, risk passes once on board, and the buyer takes the ocean freight.
The rest of the brief — the later sections and the reading notes — opens after Stripe confirms payment.
Inside
- The named port is the place
- Risk passes once on board
- The buyer takes the ocean freight
- Domestic FOB is another dialect
- Where the idea stops applying
- A distinction worth keeping
Sources
- FOB Incoterm named port of shipment
- On-board delivery under sea freight terms