What does FOB stand for in construction?
free on board
FOB stands for “free on board” or “freight on board” and is a designation used to indicate when liability and the responsibility of transporting goods are either on the seller or the buyer.
What does FOB mean in steel?
Free On Board
Freight On Board / Free On Board or FOB is a very common term in the freight industry, but one that is most misunderstood.
What does FOB to jobsite mean?
F.O.B. Destination means goods are to be delivered to the destination designated by the user which is the point at which the user accepts ownership or title of the goods.
What does FOB mean legally?
Free on Board
Designation of the passing of risk of loss of goods from seller to buyer. Free on Board (FOB) indicates that the seller is responsible for getting the goods onto a ship designated by the buyer. At this point, the risk of loss passes from the seller to the buyer.
Does FOB stand for?
Free on Board (FOB) is a shipment term used to indicate whether the seller or the buyer is liable for goods that are damaged or destroyed during shipping. “FOB shipping point” or “FOB origin” means the buyer is at risk once the seller ships the product.
What is difference between CIF and FOB?
In CIF, the seller is responsible for transporting goods to the nearest port, loading the goods on the ship and paying freight for the goods to be delivered to a port chosen by the buyer. In FOB trading, the seller is only responsible for taking the goods to the nearest port on his or her end.
What type of contract is FOB?
Basically, FOB contract is a sample sale of goods contract used in international overseas trade in which the parties agree that the seller takes all the responsibility until the goods are carried through the vessel’s rail, and the buyer undertakes all the risks, costs and duties when the goods is passed over her rail …
What is difference between FOB and FCA?
FCA vs FOB The difference between FCA and FOB is that FCA products are conveyed once positioned onto the vehicle organized by the purchaser or conveyed to the named place, whereas FOB merchandise is conveyed when the vendor puts the load on board the vessel determined by the purchaser.
What does FOB stand for in lumber industry?
The term in the lumber industry originated when some mills began to ship via rail. They would F.O.B. a rail car at the closest rail siding. This means the mill (the seller) would get it loaded onto the rail car and pay for all charges (shipping and handling) related to getting it loaded.
What does f.o.b.my favorite city mean?
Therefore, “f.o.b. mill” means that you will load the lumber on a truck or other carrier at the mill without cost to the buyer. “F.O.B. My Favorite City” means that the seller will deliver the goods to a carrier at My Favorite City (which often is a port city).
Where did the term FOB our yard come from?
The shipper can say “FOB our yard,” which is a misuse of the term, but it would mean that they don’t pay shipping cost at all. The term in the lumber industry originated when some mills began to ship via rail. They would F.O.B. a rail car at the closest rail siding.