Logo Dutch central governmentLogo Business.gov.nl, government information for entrepreneurs.MenuSearchSearchHomeRunning your businessInternational businessInternational transportUsing Incoterms® transport conditions

FOB (Free on Board)

This information is provided by:Netherlands Chamber of Commerce, KVKNetherlands Chamber of Commerce, KVK
Incoterms FOB

FOB is a suitable Incoterms® rule for transport of bulk and general cargo by water. The seller delivers the goods on board the vessel at the agreed port of departure.

Seller arranges and pays for:

  • Transport up to and including loading on board a vessel, named by the buyer, at the agreed port of departure.
  • Export formalities and export documents.

Buyer arranges and pays for:

  • Transport from the departing ship to final location.
  • Import formalities and local import documents.

Suitable for:

  • Trade within and outside the EU.
  • Transport of bulk and general cargo by ship.

Not or less suitable for:

  • Container transport, as the containers cannot be checked at the moment of risk transfer.
  • Payment by Letter of Credit or documentary collection, because the buyer receives the Bill of Lading as the shipping company’s contracting party.
  • Transport by air, road, or rail.

Transfer of risk from seller to buyer:

  • Once seller delivers goods on board vessel, named by the buyer, at the agreed port of departure.

Points of attention:

  • Only intended for transport by water.

Read more about FOB.

To top