What is FREE ON BOARD (FOB)?

1. Up to getting goods on ship in the port of departure as specified by the buyer, all charges are included. Known also as collect freight, freight collect, or freight forward. Price invoiced or quoted as a term of sale by a seller. 2. Followed by the name of a port or city, e.g., F.O.B. San Francisco, it indicates no charges to the buyer for goods placed on board a carrier at the point of shipment. Also refer to ex works.

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