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Free On Board (FOB)

[free on bawrd]

What is the definition of Free On Board (FOB)?
A shipping term used to indicate the point at which the ownership and responsibility of goods pass from the seller to the buyer. 'FOB destination' means the seller retains risk of loss until the goods reach the buyer's location, whereas 'FOB shipping point' means the buyer assumes responsibility once the goods leave the seller's premises.
Using Free On Board (FOB) in an Example

In a transaction noted as 'FOB shipping point', the buyer is responsible for shipping costs and risk of loss as soon as the goods leave the seller's warehouse. Conversely, in 'FOB destination', the seller is responsible for freight charges and any damage or loss until the buyer receives the goods.

Using Free On Board (FOB) in a sentence

The contract specifies that the machine parts will be delivered FOB destination, so we will not be responsible for the shipping costs or any damages incurred during transit.

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FOB

Indicates the point at which title to goods passes from the seller to the buyer, specifying the party responsible for freight charges and risk of loss during transportation.
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FOB Destination

A shipping term indicating that the seller is responsible for the transportation costs and risks until the goods reach the buyer's specified delivery location.
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FOB Shipping Point

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The discipline concerned with the management, investment, and allocation of money and other financial assets, including the processes of acquiring and managing resources.
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Form 10-K

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Form 10-Q

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