Posted in Operations and Supply Chain Terms, Total Reads: 2066
Definition: FOB (Free On Board/Freight On Board)
FOB is an initial or acronym which is used to specify certain points in shipping of the goods. Specifically it tells the info on the buyer and seller and info on the party paying the system. It also specifies the party responsible and liable for the product under shipping.
Many shipping of good terms are used initiated by FOB. It is mostly used in US as a liability of goods. If used with word origin it means the specification of the party responsible for loading and transportation. Usually it is the buyer who pays the shipping cost and held responsible fo the goods shipped from the shipper.