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International Trade & Logistics Terminology

Our glossary simplifies common industry terms in freight and logistics into clear, easy-to-understand explanations.

Free On Board

Free On Board (FOB) is a term in international trade that requires the seller to deliver the goods to a designated port for loading, complete export customs clearance, and assume all costs and risks prior to loading. Risk transfers to the buyer once the goods are loaded on board. FOB is one of the most commonly used terms, clearly defining responsibilities between buyer and seller. Exporters and importers should specify the port and loading time in their contracts to avoid disputes.

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