Incoterms
FOB explained
Free On Board
The seller loads the goods onto the vessel at the named port of shipment; risk and cost pass to you at that point.
Full definition
FOB is the most common ocean term quoted by Chinese factories. The supplier handles export clearance and loading; you own the ocean freight, insurance, US customs entry, duties and inland drayage. A quote of "FOB Shenzhen" means you (or your forwarder) arrange everything from Yantian to your DC — so compare FOB quotes only after you add your own freight and duty lines.
Worked examples
FOB Shenzhen USD 12.50 / pcFOB Shanghai USD 8.00 / pc (inland trucking to port included)
Related terms
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