VW Passat
Acronyms & Abbreviations
Remote Control Devices

What is FOB?

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2014-09-26 10:03:10
2014-09-26 10:03:10

Answer FOB actually stands for Free on Board not Freight on Board.

It is only applicable to shipping (not air freight) and means the sender's responsibility for insurance/tax/duty and risk ends once the goods have passed the ship's rail. Therefore, if the ship sinks after leaving port (or even in port) and you do not have your own insurance, you lose the goods and all recourse. If the goods are damaged whilst being unloaded, again you are liable for all losses.

FOB is the worst possible agreement in the eyes of the buyer (receiver) of the goods and the best possible agreement in the eyes of the seller (sender). how is the payment of product

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