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What is FOB Price ?

Categories: FAQStars: 3Stars Visit: - Release time: 2015-09-28 16:47:00
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                              What is FOB Price ?

            what is FOB

FOB stands for Free On Board,FOB Price means the price includes the shipment cost up to the 

place of the buyer, and the shipment cost will be paid by the seller.

 

FOB specifies which party (buyer or seller) pays for which shipment and loading costs, or where 

responsibility for the goods is transferred, it is always used in conjunction with a port of loading. 

Indicating FOB port means that the seller pays for transportation of the goods to the port of 

shipment, plus loading costs. The buyer pays cost of marine freight transport, insurance, unloading, 

and transportation from the arrival port to the final destination. The passing of risks occurs when 

the goods pass the ships rail at the port of the shipment.

 

 

For example, FOB Xiamen indicates that the seller will pay for transportation of the goods from 

their factory to the port of Xiamen, and the cost of loading the goods on to the cargo ship (this 

includes inland haulage, customs clearance, origin documentation charges, demurrage if any, origin 

port handling charges, in this case Xiamen). The buyer pays for all costs beyond that point 

(including unloading). Responsibility for the goods is with the seller until the goods pass the ship

rail. Once the cargo is off of the ship, the buyer assume risk.