Free On Board, an Incoterm under which the seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment. Risk and cost transfer from seller to buyer once the goods are loaded on the vessel.
Also known as: Free On Board.
Category: Cargo & Trade
On The Maritime
The desks that work with Cargo & Trade terms.
Related terms
More in Cargo & Trade
DispatchA financial reward paid by the shipowner to the charterer when a vessel completes loading or discharging in less than the agreed laytime.Dry DockingThe process of placing a vessel in a dry dock for inspection, maintenance, repair, and painting of the underwater hull.FEUForty-foot Equivalent Unit, a measure of container capacity equal to two TEU, based on the standard 40-foot intermodal container.Freight RateThe price charged by a carrier for the transportation of cargo from origin to destination, expressed per tonne, per container (TEU/FEU), or as a lump sum.Gross TonnageA measure of the overall internal volume of a vessel, calculated according to the International Convention on Tonnage Measurement of Ships (1969).LashingThe process of securing cargo aboard a vessel using chains, wires, ropes, turnbuckles, and other fittings to prevent movement during the voyage.
Back to DictionaryEntry updated May 2026