---
title: "FOB (Free on Board)"
description: "FOB (Free on Board) is an incoterm that requires the seller to clear the goods for export, deliver them to the ocean vessel, and place them on board. Cost and risk transfer from seller to buyer once the goods cross the ship's rail."
language: en
canonical: https://www.flex.thisisbrew.com/glossary/incoterm-free-on-board/
lifecycle: live
dateModified: 2026-08-20T06:44:09Z
topics:
  - "Insurance"
---

# FOB (Free on Board)

FOB (Free on Board) is an incoterm that requires the seller to clear the goods for export, deliver them to the ocean vessel, and place them on board. Cost and risk transfer from seller to buyer once the goods cross the ship's rail.

## What Is FOB?

FOB (Free on Board) is an [incoterm](https://www.flex.thisisbrew.com/glossary/incoterms/) that requires the seller to clear the goods for export, deliver the goods to the ocean vessel, and place the goods on board. Cost and risk transfer from the seller to the buyer once the goods cross the ship’s rail.

FOB should only be used for ocean shipments that will be delivered directly from the seller’s premises to the vessel. FCA is a more suitable incoterm for [LCL](https://www.flex.thisisbrew.com/glossary/less-than-container-load/) and other containerized shipments that will be delivered to a carrier at a [CFS (Container Freight Station)](https://www.flex.thisisbrew.com/glossary/container-freight-station/) or [Container Yard](https://www.flex.thisisbrew.com/glossary/container-yard/).

![FOB shipping-route diagram titled "FOB, Port and Vessel" with icons left to right: seller's premises, truck, origin port vessel, destination port vessel, destination warehouse.](https://cdn.sanity.io/images/ynj1yl20/development/19af6bcec51c8b61e9cef3bb0edd123e51e9aa66-2046x860.gif)

**It is ultimately up to the buyer and the seller to agree on each party's responsibility of cost and risk before the shipment begins.**

Back to the [full glossary](https://www.flex.thisisbrew.com/glossary/).

---

*This is a markdown version of [https://www.flex.thisisbrew.com/glossary/incoterm-free-on-board/](https://www.flex.thisisbrew.com/glossary/incoterm-free-on-board/) for AI/LLM consumption.*