FOB meaning: the China supplier delivers on board, then you take over
FOB (Free On Board) puts the export-cleared cargo on the vessel at a named origin port. From that on-board handoff, the buyer takes both the main-carriage cost and the risk.
Liam Cai · Founder, SupplymoSourcing team in Yiwu, China · six years sourcing from China
Quick answer
FOB cost responsibility and risk move together at the ship
Supplier responsibility Buyer cost Buyer risk
For suitable sea cargo, the seller pays and bears risk through the on-board handoff at the named origin port. Main carriage, destination, import and final delivery then move to the buyer.
FOBFree On Board
Sea or inland waterway only · Named port of shipment
Seller clears export and places the goods on board. Buyer takes cost and risk from the on-board handoff.
1Goods ready at factory2China pickup and inland move3Export clearance and origin handoff4Main international carriage5Import clearance, duty and tax6Final delivery to the named place
Cost responsibilitySupplier paysSupplier paysSupplier paysBuyer paysBuyer paysBuyer pays
Usually nothing beyond the price, unless the contract says otherwise
FOB suits buyers who want to choose their own freight. DDP suits buyers who want one delivered price and accept that the seller’s freight and customs costs are built in. See all 11 Incoterms or let us quote shipping from China for you.
The 1688 reality
Why your 1688 quote has no Incoterms® rule
A supplier can quote a product price or delivery to a China warehouse without agreeing to load the goods on board a vessel. Before calling the quote FOB, confirm export clearance, the named origin port, the on-board handoff and the freight scope in writing.
Domestic price, not an automatic trade rule
The listing price may end at the factory gate or at a China warehouse. That cost boundary can look EXW-like, but the contract still needs an agreed Incoterms® rule.
The export chain is still missing
Pickup, export clearance, carrier handoff, main freight, import, duty, tax and final delivery can sit outside the quoted number. Package data and cargo restrictions change those legs too.
Write three things before you pay
Use the three-letter rule, an exact named place or port, and the version, such as “FCA [named handoff place], Incoterms® 2020”. Then list any quote exclusions separately.
Start from the full chain when the quote has no agreed rule.
The landed-cost tool will show which origin, freight, import and delivery inputs are known, estimated or still missing.
FOB (Free On Board) means the seller clears suitable sea cargo for export and delivers it on board the vessel at the named origin port. Cost and risk then move to the buyer for the main carriage, destination, import and final-delivery chain.
Can FOB be used for air freight or courier shipments?+
No. FOB is limited to sea or inland-waterway transport. For air, courier, multimodal and many container handoffs where the carrier receives goods before vessel loading, compare FCA and identify the exact carrier handoff place.
Is FOB always right for a shipping container?+
Not necessarily. If the supplier delivers the sealed container to a terminal before it is placed on board, FCA often matches the physical handoff more closely. Use the rule that describes what actually happens, not the familiar code a quote template happens to show.
Does FOB include import duty?+
No. As between seller and buyer, FOB leaves import clearance and related duty or tax with the buyer. The amount depends on destination rules, classification, customs value and documents; the Incoterm does not set a rate or determine the legal importer by itself.
How do I estimate total cost from an FOB price?+
Add the buyer-booked sea freight, cargo cover, destination charges, import duty and tax assumptions, brokerage and final delivery. Confirm carton dimensions, weight, cargo restrictions, named origin port and quote exclusions before treating any result as a payable total.
Before you pay
Have an FOB quote that still leaves gaps?
Send the product, quantity, named port and supplier scope. Supplymo checks the missing package, freight, import and document inputs before supplier payment.
