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What does Freight On Board (FOB) mean?

April 26, 2017fob freight mean

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What does Freight On Board (FOB) mean?

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Freight On Board (FOB) is a term used in shipping to refer to the place where the buyer becomes responsible for the shipment and the shipping charges. Example: If the buyer lives in San Diego, CA and buys a product FOB Los Angeles, CA, the buyer must pay the shipping charges from Los Angeles to San Diego, and is responsible for seeing that items are properly insured during that shipment.