Supplymo
Sea or inland waterway only

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.

Write it, do not abbreviate it

FOB [named port of shipment], Incoterms® 2020

Then confirm the actual loading point, carrier booking, terminal charges, package data and exclusions.

Estimate freight after FOB

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.

  1. 1Goods ready at factory
    Cost: supplierRisk: supplier
  2. 2China pickup and inland move
    Cost: supplierRisk: supplier
  3. 3Export clearance and origin handoff
    Cost: supplierRisk: supplier
  4. 4Main international carriage
    Cost: buyerRisk: buyer
  5. 5Import clearance, duty and tax
    Cost: buyerRisk: buyer
  6. 6Final delivery to the named place
    Cost: buyerRisk: buyer

Insurance: No seller obligation; buyer considers cover after loading

Supplier covers through the ship

  • Goods at the agreed price, specification and packaging
  • China inland movement required to reach the named origin port
  • Export clearance and seller-side export documents
  • Delivery on board the vessel at that named port

Buyer covers after it is on board

  • Main sea or inland-waterway carriage after the on-board handoff
  • Cargo insurance if the buyer wants cover for its risk period
  • Destination terminal and local charges not in the carrier quote
  • Import clearance, duty and VAT/GST as between the parties
  • Final delivery to the warehouse, 3PL or other named endpoint

Common quote mistake

A container or air quote may need FCA, not FOB

FOB requires an on-board vessel handoff.

It is not a generic word for “the supplier handles China.” It does not apply to air or courier.

Compare the physical handoff

FOB may fit

Suitable sea or inland-waterway cargo is actually placed on board at the named port.

FCA may fit better

The supplier hands a container, air shipment or multimodal cargo to the buyer’s carrier at a named terminal or warehouse.

Compare FCA in the 11-rule table

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 may stop at the factory, a China warehouse or domestic delivery. 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 payment

Use the three-letter rule, an exact named place or port, and the version: for example, “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.

Build the full cost stack

Next decision

Turn the FOB handoff into a payable total

Estimate the buyer-booked freightCompare eligible China-origin routes after the FOB on-board handoff.Add import and delivery costsCarry the freight estimate into a full landed-cost and margin review.

Questions

FOB: common buyer questions

What does FOB mean in simple terms?

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.

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.

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