What is Free On Board (FOB)?
🚨 FOB terms are only applicable to ocean freight shipments.
Point of Risk Transfer:
When the seller delivers and unloads the goods onto the ship, the risk of goods getting damaged transfers to the buyer.
When is it best to use FOB?
A quick example:
Cost allocation - who should pay what under FOB:
Rajitha Reniguntla is a supply chain enthusiast from Hong Kong. With a curious mind, she's an avid learner carrying a knack for exploring and breaking down complex ideas. She loves to learn about new things and always aims to enhance the customer experience. Outside of work, she enjoys cycling, doodling and listening to podcasts!