Under FOB the seller handles export clearance and places the goods on board the vessel the buyer has booked. Risk passes once the goods are on board; sea freight and insurance are the buyer’s.
It is valid only for sea or inland-waterway transport and for goods actually delivered to the ship. For containers, handed to the terminal days before loading, the ICC recommends FCA: under FOB the seller carries a risk during the terminal wait that it does not control.
Related terms