Unveiling the Essence of FOB Shipping: Meaning, Incoterms, and Pricing in 2026
FOB (Free On Board) is one of the most widely used and fundamentally important Incoterms in international trade, especially for sea freight. It precisely defines the moment of handover, marking the point where cost and risk transfer from the seller to the buyer once goods are loaded on board the vessel. This guide provides a deep dive into FOB, exploring the specific obligations of each party, its key advantages for importers, and the strategic considerations for when to use it. We'll also cover the current pricing dynamics for FOB shipments originating from China.