FOB terms, or Free On Board terms, are shipping agreements that define when the responsibility for goods transfers from the seller to the buyer. Under these terms, the seller is responsible for the costs and risks associated with transporting the goods to a specified location, usually a port. Once the goods are loaded onto the shipping vessel, the responsibility shifts to the buyer. There are two main types of FOB terms: FOB Origin and FOB Destination. With FOB Origin, the buyer assumes responsibility once the goods leave the seller's premises. In contrast, with FOB Destination, the seller retains responsibility until the goods reach the buyer's location.