FOB - Free On Board Explained
FOB stands for Free on Board and is an internationally recognised shipping term used for goods transported by sea.
Bradshaw Direct supplies furniture to retailers and trade buyers on an FOB basis. This means the seller is responsible for the goods until they have been loaded aboard the buyer’s nominated vessel at the agreed port of shipment. At that point, responsibility and risk transfer to the buyer.
What is the seller responsible for?
Under an FOB arrangement, the seller is generally responsible for:
- Preparing and packing the furniture for export
- Transporting the goods to the nominated port of shipment
- Completing the required export documentation and formalities
- Managing the applicable origin-side handling
- Loading the goods aboard the buyer’s nominated vessel
What is the buyer responsible for?
The buyer is generally responsible for:
- Nominating the vessel and arranging international ocean freight
- Shipping insurance
- Costs incurred after the goods have been loaded
- Import customs clearance
- Import duties, taxes and destination charges
- Transport from the destination port to the final delivery location
What does the FOB price include?
An FOB price includes the cost of the furniture and the seller’s costs associated with preparing, transporting and loading the goods at the nominated port of shipment.
The FOB price does not include international ocean freight, shipping insurance, import duties, taxes, customs clearance, destination port charges or final delivery.
Example of an FOB order
If furniture is quoted as FOB Ho Chi Minh City, Incoterms® 2020, the seller is responsible for the goods through to their loading aboard the nominated vessel at the agreed port.
Once the goods have been loaded, the buyer assumes responsibility and risk and is responsible for the ocean freight, import process and delivery within the destination country.
Why purchase furniture FOB?
Purchasing furniture FOB gives retailers and trade buyers greater control over international freight, shipping arrangements and landed costs. It also provides access to competitive factory-direct pricing without the additional costs associated with traditional wholesale distribution.
Our team can assist with product selection, Minimum Order Quantities and container planning to help buyers build an efficient and commercially viable order.
For further information about FOB ordering, product availability or pricing, please contact:
This information is provided as a general guide. The terms stated in the applicable quotation, pro forma invoice or sales agreement will govern each order.