Maritime Incoterm where risk passes when goods are loaded on board the vessel at the named port of shipment.
Free On Board (FOB) means that the seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment. The risk of loss or damage transfers when the goods are physically on board, and the buyer bears all costs from that moment onward.
Used in maritime leg simulation and smart contract transfer-of-risk verification at port of loading.
Transfer of risk event triggered upon ePoD issuance and ocean bill of lading notarization at the port of origin.
FOB is exclusively for sea and inland waterway transport; using FOB for containerized multimodal transport is non-standard and rejected by the Incoterm Leg Validator.