What Does Free or Freight Agreeable (FOB) Mean?

The FOB Acronym Is an essential term to know in Shipping sectors

Jetta Productions / Getty Images

Whenever products are transported either domestically or internationally, the distribution needs to be combined with appropriate paperwork. The quantity and kind of paperwork vary based on if the delivery is at america or to some other country.

The freight bill, and the Free On Board (FOB) terms of sale for domestic shipments, there are three key documents to be aware of: the bill of lading. The FOB type is referenced on all documents, including the invoice for payment for most retailers.

Exactly What FOB Stands For

The acronym FOB, which is short for « complimentary up to speed » or « Freight up to speed,  » is a shipping term utilized in retail to point that is accountable for having to pay transport costs. It’s the location where ownership associated with product transfers from vendor to customer. The vendor will pay the cargo, plus the customer takes the name once it has been delivered. Plus »