FOB
Free On Board - Seller delivers goods onto the vessel at origin port. Buyer pays freight and insurance from there.
Definition
Free On Board - Seller delivers goods onto the vessel at origin port. Buyer pays freight and insurance from there.
Why It Matters for Importers
Understanding FOB is essential for anyone sourcing products from China. This term is commonly used in trade negotiations, shipping documentation, and supplier communications. Having a clear understanding helps you:
- Communicate more effectively with suppliers and freight forwarders
- Make informed decisions about shipping and logistics
- Avoid misunderstandings that could lead to delays or additional costs
Related Terms
FCL
Full Container Load - Shipping where buyer uses entire container. Cost-effective for larger shipments.
FDA
Food and Drug Administration (US) - Regulates food, drugs, cosmetics, and medical devices imported into the US.
Freight Forwarder
Company that arranges shipping and logistics on behalf of importers/exporters.
Need Help Understanding Trade Terms?
Our team can explain any sourcing or shipping terminology in the context of your specific project.