FOB, Free on Board (insert named port of loading) is an IncoTerm which is restricted to goods transported by sea or inland waterway (barge). The seller is responsible for the invoice, packaging, Export License (if necessary) and other customs formalities. He takes care of the costs such as the loading and is responsible for the goods until they pass the railing of the ship. When the goods are on board of the ship at the agreed port, the costs and risks shift from seller to buyer. The delivery condition Free On Board is most suitable be applied to bulk goods. FOB suits better for bulk cargo and not for containerized cargo. For containerized cargo you may use FCA instead. Source International Chamber of Commerce (ICC). Disclaimer Our content is not in any way legal advice or binding. The information provided by might not be the official legal or full definition. Also when pursuing a specific transaction you are encouraged to conduct your own due diligence and to consult legal counsel as appropriate.