Free On Board (FOB)

Knowledge Center





Description of Free On Board (FOB). Explanation.

 

Definition Free On Board (FOB). Description.


Free On Board (FOB) is an international sales term used in the transportation industry meaning that the seller fulfills his or her obligation to deliver a commodity when they have passed a specified loading point during a certain time period. The price includes loading the commodity on the transportation vehicle of the buyer. Also the FOB term requires the seller to clear the goods for export.


The risk of loss or damage is transferred to the buyer when the goods are loaded, so the buyer must ensure transportation and insurance from the loading point and must clear customs in the country of import. Furthermore, when counting inventory, merchandise in transit plays a crucial role depending on whether it is added to the company's balance sheet.


Note that because this is a legal term, its exact definition is much more complicated and can differ by country.


Special Interest Group - Free On Board (FOB)


Special Interest Group (5 members)


Forum - Free On Board (FOB)  

Discussions about Free On Board (FOB).


Hot Free on Board (FOB) in Accounting Usage
In accounting usage, - FOB Shipping Point means the receiver (or buyer) of the goods pays the shipping costs. - FOB De (...)
 
 
 
 
  Who Initially Bears the Costs in Free On Board?
Who will bear all the costs iniatially? What happens after that? (...)
 
 
 
 

Best Practices - Free On Board (FOB)

Here you find the most valuable discussions from the past.



Expert Tips - Free On Board (FOB)

Here you will find advices by experts.



Resources - Free On Board (FOB)

Here you find powerpoint presentations, micro-learning videos and further information sources.



Compare with: Cost, Insurance and Freight

Special Interest Group Leader

You here? Sign up for free


 
 

Return to Management Hub: Supply Chain & Quality


More on Management  |  Return to Management Dictionary  | 

 

This ends our Free On Board (FOB) summary and forum.



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2019 12manage - The Executive Fast Track. V15.2 - Last updated: 15-12-2019. All names of their owners.