free on board (FOB)

Definitions (2)
Related Terms
1. Term of sale under which the price invoiced or quoted by a seller includes all charges up to placing the goods on board a ship at the port of departure specified by the buyer. Also called collect freight, freight collect, or freight forward.
2. Used in shipping to indicate that there is no charge to the buyer for goods placed on board a carrier at the point of shipment. Typically followed by the name of a port or city, e.g., F.O.B. San Francisco. See also ex works.

Use 'free on board (FOB)' in a Sentence

I thought it was worth it to order the goods from a Chinese company, but when I saw that the price was not free on board, I realized that ordering from a different company would actually be more cost effective.
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The only way the oversees manufacturing contract would work is if shipping was free on board. The company could not make money without free shipping.
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Ms. Watson had never encountered the free on board terminology prior to placing her first order for personal massagers on AliExpress.
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