An Incoterms rule under which the seller delivers by loading the goods on board the vessel nominated by the buyer at the port of shipment.
[01]
Under FOB, the seller clears the goods for export and loads them on board the vessel nominated by the buyer at the named port of shipment. Risk passes to the buyer once the goods are on board; main freight, insurance and costs in the destination country are borne by the buyer.
FOB is used only for sea and inland waterway transport. It is a common delivery term for purchases from China.