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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.
Wiki User
∙ 14y ago
Wiki User
∙ 13y agoFOB (Free On Board) Seller fulfills his or her obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks to loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export.
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Does fob mill mean the shipper pays the freight or the buyer?
I am guessing "freight on board" which means loaded but not transported.
If buyer pays the freight cost of delivering merchandise what is the delivery term?
Free On Board Destination (FOB Destination). This means that the seller pays the the freight costs from the shipping point to the buyer's final destination.
Why is shipping freight so cheap?
Shipping freight is so cheap as the company that needs to ship a lot of tonnage is actually chartering a ship. The charterer pays the ship owner for the use of the ship.
What is the difference between FOB destination and FOB shipping point?
FOB (Freight On Board) Destination and FOB Shipping specifies whether the buyer or seller owns the goods, and therefore, who pays for the shipping and includes the items in their inventory. FOB Destination means that the seller owns the goods until the buyer receives them. Therefore, the seller pays the shipping costs. FOB Shipping means that the buyer owns the goods once they are shipped. Therefore, the buyer pays the shipping costs.
What is the meaning of the FOBS acronym?
The acronym FOB stands for 'free on board'. It refers to freight costs of shipping deliveries in business, and denotes the point between the seller and buyer where the goods do or do not have the freight charges paid for. For example, if a Los Angeles popcorn company buys popcorn from Alaska, and the Alaska seller declares the purchase to be FOB Alaska, or FOB their own warehouse, this means the buyer must pay the freight from Alaska to California. If the seller states the popcorn purchase is FOB Los Angeles, or FOB 'your door', then the Alaska seller pays the freight to that logistics point.
What does CIF mean in shipping terms?
CIF means Cost Insurance and Freight, which means the seller pays to get the load to its destination. The alternate is FOB--Free On Board--which means the buyer pays the freight and insurance.
What is Freight term FOB?
FOB means Freight on Board. It means the seller is responsible to load the freight on the truck and the buyer is responsible to pay the freight costs from the dock to the destination. Prices are sometimes followed by FOB . For example car prices are listed as FOB Detroit. This means the price without shipping added.
Difference between FOB and C and F?
The Difference b/w FOB and C&F is FOB + Insurance + Freight = C&F I.e Insurance and freight in both the valuation.
What is meant by fob origin?
fREIGHT oN bOARD
What is cif and fob means?
- CIF is Cost, Insurance and Freight - FOB is Free on Board
Who pays FOB?
IN TERMS OF FOB, Who pay pre -carriage? answer: seller
Freight on board?
Free on Board (FOB - U.S. Domestic Use)Shipped under a rate that includes costs of delivery to and the loading onto a carrier at a specified point.- FOB Freight Allowed: The same as FOB named inland carrier, except the buyer pays the transportation charge and the seller reduces the invoice by a like amount.- FOB Freight Prepaid: The same as FOB named inland carrier, except the seller pays the freight charges of the inland carrier.- FOB Named Point of Exportation: Seller is responsible for the cost of placing the goods at a named point of exportation. Some European buyers use this form when they actually mean FOB vessel.- FOB Vessel: Seller is responsible for goods and preparation of export documentation until actually placed aboard the vessel.Freight on board (F.O.B.) is a trade term meaning the party (usually the shipper/vendor/supplier/manufacturer) at the origin port is responsible for delivery freight to the receiving location as agreed and indicated in the trade term.For example, FOB Buffalo, NY vs. FOB New York, NY.FOB Buffalo, NY means shipper is only responsible for moving goods to a Buffalo, NY receiving location. It could also be shipper's factory location. The buyer is suppose to arrange all freight moves from Buffalo to its destination.FOB New York, NY means vendor is responsible to move goods to a terminal/ a rail ramp/or a receiving warehouse in New York, NY. Then buyer takes over the responsibility of the freight till it gets to the destination.
