Define: Free On Board

Free On Board
Free On Board
Quick Summary of Free On Board

A shipping term which indicates that the supplier pays the shipping costs (and usually also the insurance costs) from the point of manufacture to a specified destination, at which point the buyer takes responsibility.

What is the dictionary definition of Free On Board?
Dictionary Definition of Free On Board
adj. referring to purchased goods shipped without transportation charge to a specific place. Free on board at the place of manufacture shows there is a charge for delivery. Example: if an automaker in Detroit sells a car "FOB Detroit," then there will be a shipping charge if delivery is taken anywhere else. If the contract reads "FOB New Orleans," then the auto will be shipped to that city without charge, but with charge for delivery from New Orleans to somewhere else.
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This glossary post was last updated: 29th March, 2024.

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