Shipping & logistics
FOB
Free On Board — seller delivers at load port; buyer bears freight and insurance from that point.
FOB (Free On Board) under Incoterms 2020: the seller delivers the cargo on board the vessel nominated by the buyer at the named load port. Risk and cost pass at the ship's rail.
For physical oil, FOB pricing = benchmark +/- differential, with buyer organising the vessel and freight.
See also