9.FOB Incoterms – Free on Board (named port of shipment)
Be wary of the misleading nature of this common phrase and how it is often misused. It is to be used only for exclusively water transportation. Do not use it for road/rail/sea multimodal container transportation – use FCA instead.


In FOB, the seller clears the goods for export and loads the goods on the vessel and at the port that have been nominated by the buyer.

New for Incoterms 2010 is that cost and risk are divided when the goods are actually on board: but delivery occurs when the goods are on board ship.