INCOTERMS 2010: ICC OFFICIAL RULES FOR THE INTERPRETATION OF TRADE TERMS

FOB - Free On Board (named port of loading)

Under FOB terms the seller bears all costs and risks up to the point the goods are loaded on board the vessel. The seller's responsibility does not end at that point unless the goods are "appropriated to the contract" that is, they are "clearly set aside or otherwise identified as the contract goods. Therefore, FOB contract requires a seller to deliver goods on board a vessel that is to be designated by the buyer in a manner customary at the particular port. In this case, the seller must also arrange for export clearance. On the other hand, the buyer pays cost of marine freight transportation, bill of lading fees, insurance, unloading and transportation cost from the arrival port to destination. Since Incoterms 1980 introduced the Incoterm FCA, FOB should only be used for non-containerized seafreight and inland waterway transport. However, FOB is commonly used incorrectly for all modes of transport despite the contractual risks that this can introduce. In some common law countries such as the United States of America, FOB is not only connected with the carriage of goods by sea but also used for inland carriage aboard any "vessel, car or other vehicle.

Who covers the logistics charges?

Distribution of costs according to the Incoterm negotiated in the contract. Classification according to the increased level of obligations for the seller

distribution-FOB

Incoterms 2010

  • CFR — Cost and Freight
  • CIF — Cost, Insurance and Freight
  • CIP — Carriage and Insurance Paid Тo
  • CPT — Carriage Paid To
  • DAP — Delivered at Place
  • DDP — Delivered Duty Paid
  • DAT — Delivered at Terminal
  • EXW — EX Works
  • FAS — Free Alongside Ship
  • FCA — Free Carrier
  • FOB — Free On Board
  • incoterms 2010 mini logo

Incoterms 2000

  • DDU — Delivered Duty Unpaid
  • DES — Delivered Ex Ship
  • DEQ — Delivered Ex Quay
  • DAF — Delivered At Frontier
icon4 Container Tracking The tracking system allows to determine the current position of your container on the world map and determines the port and the time spent in port of congestion.
icon3 Load Calculator Choose the equipment type (container or truck), packing type and dimensions. Get a 3D image of stowing mixed sized cargo in the most efficient manner!
icon2 Route Planner Route Planner is a web-based service that helps you to provide your customers with information about shipments/parcels on the World map.
icon1 Logistics Explorer Whether you need port to port or door to door service, choose any place of loading and final destination and get the brief description of route, transit time and an instant freight rate for any type of service.