Wednesday, October 10, 2012

What is FOB Price?

Free on board(freight on board) price means a price which includes goods plus the services of loading those goods onto some vehicle or vessel at a named location, sometimes put in parentheses after the f.o.b.

example:
fob(shipping point)-means the price is good only till the loading /shipping area. The shipment cost will be paid by the customer/buyer.
fob(destination)-means the price includes the shipment cost up to the place of the customer/buyer. The shipment cost will be paid by the seller.

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