FOB Origin
"FOB Origin" stands for "Free on Board Origin," a shipping term used in international trade. It indicates that the seller is responsible for the goods until they are loaded onto the shipping vessel at the point of origin. Once the goods are on board, the buyer assumes all risks and costs associated with transportation.
This term is important for determining liability and shipping costs. Under FOB Origin, the buyer must arrange and pay for shipping from the seller's location, while the seller's responsibility ends once the goods are on the ship. Understanding this term helps both parties clarify their obligations in a transaction.