FOB (shipping)

The term "free on board" (FOB) is used in international commercial law to indicate the point in the delivery of goods at which the respective obligations, costs, and risk involved in the transaction shift from the seller to the buyer in accordance with the Incoterms standard that is published by the International Chamber of Commerce. FOB is a term that is exclusively used in the context of non-containerized marine freight or inland waterway transit. FOB, like all other Incoterms, does not specify the moment when ownership of the items has changed hands.

In contemporary domestic shipping inside North America, the term FOB is also used to denote the point at which a seller is no longer liable for shipping charges. 

There is no connection between ownership of a cargo and the Incoterms, which deal with delivery and risk. In the context of international commerce, the ownership of the cargo is established by reference to the contract of sale as well as the bill of lading or waybill.