What does FOB mean in terms of the shipping industry?

Answer 1

FOB is Free on Board and means that the charges become yours at the origination. The seller will load it on the truck and then it's yours.

Freight On Board is also correct. Usually the seller will designate whether it is F.O.B. at his store/plant or if it is F.O.B. your destination. This determines who is liable for the freight risks/costs. F.O.B. to your door is always better. It shifts the responsibilities/costs to the seller.

Hope this helped clear it up.

Answer 2

FOB means Freight On Board which in effect means that you have purchased the product delivered to a certain place, the freight is included to that location, but, it is your responsibility to unload the item(s). So if you bought something that weighs 50 pounds it is not a big deal because the truck driver can just kick if off the truck, but if you bought something that weighs 10,000 pounds if is your responsibility to pay for a crane and crew to unload it, because you bought it FOB or Freight On Board the truck. If you buy it FAS or Freight Along Side then the seller must make arrangements to get it off the truck. FOB and FAS originally came from when ships were more commonly used, as in On Board or Along Side a ship.

Answer 3

The FOB Point is the location where legal title transfers on items shipped between the shipping and receiving parties. Most manufacturers ship FOB factory which means the purchaser owns the equipment once it leaves the shipper's facility. Loss or damage in shipping is legally the responsibility of the party having title, which on FOB factory shipments is the purchaser. Most manufacturers will assist in filing freight claims for damage, however it remains the purchaser’s responsibility to do such filing and the terms of the original invoice still apply.

Answer 4

Fob Plant

Answer 5

FOB — Items shipped directly from the factory, which are noted as Freight-On-Board (FOB), are billed an additional cost for shipping and handling. FOB shipping charges may depend on destination as well as weight.

Answer 6

FOB is Free on board FOB (location)

the seller will load it aboard a ship, truck or rail at the location specified at the sellers cost. All further shipping costs are the buyers.

Answer 7

F.O.B.- without charge to the purchaser for delivery on board a carrier (originally a ship), at a specified location or point; used in such phrases as FOB destination to specify the point where the title of goods passes from the seller to the buyer.

Answer 8

It means Freight on Board,the cost of the merchandise from a certain point,let's say I sell a dozen of sunglasses for $16 FOB L.A. (free of shipping) if I sell in L.A. to a customer in Miami and they want it for $16 FOB their warehouse this means that I am paying for the shipping.

Answer 9

FOB = Free On Board

Answer 10

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Free On Board (FOB) is an Incoterm. It means that the seller pays for transportation of the goods to the port of shipment, plus loading costs. The buyer pays freight, insurance, unloading costs and transportation from the port of destination to his factory. The passing of risks occurs when the goods pass the ship's rail at the port of shipment. Internationally the term specifies the port of origin, e.g. "FOB New York" or "FOB Vancouver". Domestically within the United States and Canada, the term is used in two common phrases, "FOB shipping point" and "FOB destination," to distinguish when the title of goods passes from the seller to the buyer. Under the terms of "FOB shipping point," the title of the goods passes to the buyer at the shipping point. Similarly, under the terms of "FOB destination", the title of the goods passes to the buyer when the goods arrive at their destination. The distinction is important because it determines who pays for the shipping costs of the merchandise: whoever holds the title to the merchandise at the time of its shipping pays for its transportation costs unless otherwise noted (e.g., freight prepaid or freight collect). Also, it is important that if the shipment is damaged while traveling the owner must file the freight claim. Note that this usage is inconsistent with the official Incoterm definitions, and should not be used for international shipping. North American FOB definitions correspond to Incoterm approximately as follows: * FOB shipping point or FOB shipping point, freight collect: FCA shipping point * FOB shipping point, freight prepaid: CPT destination * FOB destination or FOB destination, freight prepaid: DDU destination * FOB destination, freight collect: not commonly used, no Incoterm equivalent With the advent of e-commerce, most commercial electronic transactions occur under the terms of "FOB shipping point" or "FCA shipping point". Most analysts see this as a disadvantage of online shopping compared to traditional in-person purchasing, where "FOB destination" is more prevalent. When counting inventory, merchandise in transit plays a crucial role depending on whether it is added to the company's balance sheet. Items under "FOB shipping point/destination" are checked to see if the purchaser has title of the goods. If it does, then they are added to the inventory count, but not the balance sheet. If not, they are treated as would items under consignment, meaning they still belong to the supplier (consignor).