
What Is FOB Shipping and What Does It Mean for Your Supply Chain?
FOB shipping, Free on Board is the Incoterm you will encounter on almost every supplier quote when sourcing products from China. It is also one of the most misunderstood terms in international trade, and misunderstanding it can leave you unexpectedly liable for freight costs, cargo damage, and import duties on a shipment you thought was the supplier’s responsibility. FOB is one of 11 standardised shipping terms published by the International Chamber of Commerce under Incoterms 2020. These terms define with legal precision who is responsible for costs, risk, and logistics at each stage of an international shipment. FOB accounts for roughly 40% of all maritime trade globally, making it the most commonly used Incoterm in ocean freight. This guide explains






