FOB

FOB stands for Free on Board in INCOTERMS terminology, and means that you complete a sale by delivering the merchandise at a specific sea freight port, typically close to the factory.

The title (ownership) of the merchandise transfers to your customer upon delivery to the vessel. Your proof of delivery is the bill of lading, a confirmation by the vessel captain that they have received your merchandise.

Typically, you deliver the merchandise not to the captain directly, but rather to a freight forwarder, whose job is to book the vessel, receive the goods and load them on the vessel.

 
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