What does FOB acronym mean?
Freight on Board (FOB) is the term used to describe the amount of freight costs and also which party has the responsibility of freight costs.
FOB costs are often determined by size of the shipment as well as distance the shipment needs to travel and can have external factors like logistics companies, trade and tax costs as well as other third-party fulfilment services attached.
What is FOB delivered?
FOB delivered means that the seller or shipper will incur the FOB costs where the contract has initially stated this. Freight on board delivered is an all-inclusive amount for a product and could be used as a marketing device or between companies who have an existing relationship.
What is FOB Origin?
FOB origin means that the buyer will assume the FOB costs and will essentially pay for the product to get to their location from the supplier’s warehouse. Freight on board origin is useful for buyers who are aware of their logistics network costs and import and export costs.