Definition
Free On Board is an Incoterm for sea and inland waterway transport. Under FOB, the seller delivers the goods on board the vessel at the named port of shipment, and risk transfers to the buyer at that point. The buyer arranges and pays for ocean carriage onward.
Why it matters
FOB is one of the most common terms in ocean import. It determines that the buyer (importer) controls and pays for the main carriage, which is the leg a freight forwarder typically manages.
How TIO handles it
TIO captures the FOB point and port from the documents so the job reflects the correct cost and risk handoff.
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