Personal Finance
Acronyms & Abbreviations
Transportation and Logistics

If ship FOB who pays the freight?



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FOB means freight on board. What this means is that the person supplying the goods will deliver and load the goods onto a vessel of your choice. You will be expected to arrange the actual shipping of the goods and cover all the costs. For example if I was buying goods in China to send to Europe, I would arrange a boat to ship my products overseas, when this is all booked, i would tell my supplier in China the name of the ship and when it will be at the port of origin (where the goods are coming from).They will then have to arrange the goods to be loaded onto the ship within the timeframe specified, after that, it would be my responsibility.