FOB origin

What is FOB Origin?

FOB origin is a term used in international trade to describe who is responsible for paying the shipping costs of a product. It stands for “Free on Board” and indicates which party is responsible for ensuring the goods are loaded onto the transport vessel at the port of origin.

Who Pays for FOB Origin Shipping Costs?

Generally, the buyer will be responsible for the shipping costs when FOB origin is specified in the purchase contract. This means the buyer will be responsible for the costs associated with getting the goods from the seller’s warehouse to the port of origin. The costs could include packing, freight, insurance, and any other necessary expenses to get the goods to the port.

Examples of FOB Origin

Here are some examples of how FOB origin is used:

  • The buyer agrees to pay all shipping costs when goods are FOB origin.
  • The seller will load the goods onto the vessel and the buyer will cover all remaining shipping costs.
  • The seller’s responsibility ends when goods are delivered to the port of origin and the buyer pays for any additional costs from there.
  • The buyer is responsible for all costs associated with getting goods from the seller’s warehouse to the port of origin.

Conclusion

FOB origin is an important term used in international trade that determines who is responsible for paying the shipping costs of a product. It is important for buyers and sellers to understand this term and how it affects their responsibilities. For more information, please see the following links: