What is free on board?

Free on board is a term used to describe a specific shipping goods process. A process sometimes referred to as freight on board or simply a FOB, which means transporting a customer through a vessel required by the buyer. The seller's obligation is considered to be fulfilled as soon as the order is removed from the ship holding and stored on the dock.

The use of free on board is commonly used worldwide. In the actual practice of FOB, it helps to determine the exact point in the delivery process when the seller gives up liability for the goods and the buyer takes over this liability. With this type of shipping situation, the seller is responsible for any damage that occurs until the goods are passed through the ship's railway. From now on, the seller is responsible for the status of the goods.

F or, for exampleThe vessels have been sent to a vessel that meets the buyer's consent. The Seller processes all the details of the delivery of goods to the dock and loading these goods into the ship. At the destination, the seller also arranges for the goods to be removed from the possession and stored on the dock. Once the goods are outside the vessel, the buyer must agree to remove them from the dock and transport them to the buyer's business, which is a process known as the pick -up of the customer.

If the goods are damaged when it is still on board the ship, the seller is responsible for the exchange of goods or return of any payments received for the order until now. If the goods are damaged when setting the dock at the finish and waiting to be picked up by the buyer, the seller has no responsibility. Once the goods are used to transport the order, the seller is no longer responsible for the status of any of the items contained in the order.

It is important to realize that the exact application of free on board can be somewhat foxIT from one country to another. For this reason, the buyer should always make sure that the seller means when it offers free on board. By obtaining detailed information on how the shipment will be addressed, and at what time the seller must take responsibility for sending the goods is significantly minimized the chances of incorrect communication between the buyer and the seller.