Free On Board — an Incoterm where the seller's responsibility ends once goods are loaded onto the vessel.
FOB (Free On Board) is one of the most widely used Incoterms. Under FOB, the seller is responsible for delivering the goods, cleared for export, on board the vessel nominated by the buyer at the named port of shipment. From that point, all risk and cost — ocean freight, insurance and onward transport — transfers to the buyer.
FOB pricing is quoted as, for example, "FOB Mumbai", meaning the price includes all costs up to loading the goods onto the ship at Mumbai port.
FOB is popular with experienced buyers who prefer to arrange and control their own freight and insurance for better rates.