FOB

Stands for: Free On Board

An Incoterms rule under which the seller delivers goods on board the vessel named by the buyer at the port of shipment, and the buyer bears cost and risk from that point.

In Bangladesh the port is almost always Chattogram, so prices are quoted “FOB Chattogram”. An FOB price covers the garment, factory packing and export clearance; main freight, insurance, import duty and delivery are on top.

FOB is defined for sea and inland-waterway transport. For containerised cargo handed to a carrier before loading, the ICC suggests FCA as the better fit, although FOB remains the market habit.