What does “FOB” mean?
FOB means Free On Board. Basically, this means that the shipper releases ownership of an item where he states it is FOB. For instance, you will always see “FOB” followed by a city or port name. For instance, “FOB Hendersonville, TN” means the item is released of ownership in Hendersonville. Let’s say you live in Sun City, KS (look it up just for fun) and we ship your order FOB Hendersonville. That means you own the product from the moment it leaves our warehouse. In other words, insuring the item is your responsibility, as we no longer own the product. Sometimes, you will see “FOB Origination” which is an easy way to say the same thing when there’s other cities from where we might ship. We have locations in a few different states, and we choose what’s the best location to use for each particular order. Almost all shippers ship FOB Origination. It is extremely rare for a domestic shipment to be FOB Destination. For your protection, you should buy insurance. Especially on large or expens
FOB means “Free on Board” – that is on the ship ready to leave the offshore port. If your quote is stated that way, you are responsible for broker charges, US CUSTOMS duty, ocean freight and inland freight from the US Port of Entry nearest you. Note that this could easily be a major inland city such as Chicago or Detroit.