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FOB.

Free on board — the Incoterm naming the point where cost and risk pass from seller to buyer. FOB origin and FOB destination put freight, and the loss of a damaged pallet, on different parties.

What it means

Free on board — the Incoterm naming the point where cost and risk pass from seller to buyer. FOB origin and FOB destination put freight, and the loss of a damaged pallet, on different parties.

What goes wrong

"FOB" without a place after it is not a term. The word that follows it decides who is paying for the truck.

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Every term here is one the protocol actually uses, defined for somebody who was never taught it — with the part that usually goes wrong. All terms →