Free On Board (FOB)
Seller delivers on board the vessel at the named port. Risk and cost pass to the buyer there.
Under FOB the seller clears the goods for export and loads them on board at the named port of shipment. From that point the buyer bears cost and risk, arranges the main carriage, and insures if they want cover.
FOB is for sea and inland waterway only. Used for containerised cargo handed over at a terminal rather than loaded at the ship's rail, FCA is the correct rule, and the ICC has said so repeatedly. In practice FOB remains widely used for containers anyway.
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