Free On Board

Incoterms

Seller delivers goods on board the vessel at the named port. Risk and cost transfer when goods are on board.

Sources

1. International Chamber of Commerce — Incoterms® rules iccwbo.org accessed 17 September 2026

The International Chamber of Commerce writes and owns the Incoterms® rules, and describes them as “a set of standards used in international and domestic contracts for the delivery of goods” — “a set of eleven three-letter trade terms” clarifying “the tasks, costs and risks involved in the delivery of goods from sellers to buyers”. The per-rule obligations summarised above are not reproduced from an ICC page. ICC publishes the rules themselves as a paid edition, and its free pages do not set out where risk transfers or who bears which cost under each individual rule. The definition above is this lexicon’s working summary; the ICC edition is the authority, and a contract should cite it rather than this page.

Related terms

• Carriage and Insurance Paid To
• Carriage Paid To
• Cost and Freight
• Cost Insurance Freight
• Delivered at Place
• Delivered at Place Unloaded

From the AJG lexicon archive (July 2026).