FOB origin
FOB origin, or Free on Board origin, is a shipping term used in international trade to indicate that the seller is responsible for the goods until they are loaded onto a vessel at the specified port. Once the goods are loaded, ownership and risk transfer to the buyer.
For example, if a seller in China agrees to sell goods FOB origin to a buyer in the United States, the seller is responsible for the goods until they are loaded onto the vessel in China. Once loaded, the buyer assumes responsibility for the goods during transit to the United States.
FOB origin is typically used for sea freight shipments, but can also apply to air freight or land transportation.
It is important for both buyers and sellers to understand the implications of using FOB origin in a sales contract, as it determines who is responsible for the goods at various points during the shipping process.
Benefits of using FOB origin:
- Clear division of responsibility between buyer and seller
- Cost-effective shipping arrangements
- Reduced risk for both parties
For more information on FOB origin, you can visit Wikipedia.