Free on board definition
/What is Free on Board?
Free on board is a delivery term, indicating that the seller of goods is obligated to deliver the goods to a vessel that will then deliver the goods to the customer. The obligations of the seller end when the goods are on board the vessel. At this point, the risks of ownership pass from the seller to the buyer, who is now responsible for the cost of transport, as well as any clearance fees incurred during transport.
The meaning of the term originally only encompassed ships as delivery vehicles, but it is now understood to include other forms of transport, such as trucks and trains.