Free on Board (FOB) | Shipping Term Explained | Logistics Glossary
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GLOSSARY

Free on Board (FOB)

The Free on Board (FOB) indicates the liability of the cargo if it gets damaged or destroyed.

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What does Free on Board (FOB) mean in shipping?

If the cargo gets damaged during transit, the parties liable should be indicated to avoid misunderstanding. Therefore, the free onboard designation suggests which involved trading parties will cover the damage costs and when the title passes from the seller to the buyer.

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