Guide to FOB Trade Terms and Risk Mitigation in Ocean Freight
Under FOB (Free On Board) terms, the seller is responsible for costs up to the port of shipment, while the buyer bears the ocean freight and destination port charges. Pay close attention to the division of insurance responsibilities and the transfer of risk to avoid potential trade risks. Understanding these aspects of FOB is crucial for both parties involved in international transactions to ensure clarity and minimize disputes related to costs and liabilities during the shipping process.
