All terms

Shipping & logisticsfob

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.

Related: CFR, CIF, Incoterms.

Frequently asked

What does FOB mean in oil and commodity trading?
Free On Board — seller delivers at load port; buyer bears freight and insurance from that point.
How do I check a counterparty that uses FOB in a deal?
The term itself is not enough to clear or condemn a deal. What matters is the counterparty behind the pitch. Screen that name for free against 8 sanctions lists plus PEP and OilFlow's first-party cluster corpus in seconds, or order the full 7-step dossier for $25, and confirm identity documents and banking details independently before you transact.

See also

cfrcifincoterms

Seen this term in a live pitch?

These terms show up in real deal pitches — some legitimate, some not. OilFlow screens the counterparty behind the pitch against 8 sanctions lists + PEP and a first-party-investigated fraud-cluster corpus, with a clearance verdict in under 30 seconds.