FOB - FREE ON BOARD
Under the terms of FOB (short for “Free on Board”), the vendor clears the products for export and ensures they're delivered to and loaded onto the vessel for transport at the named port of departure.

The buyer takes over risk and prices, as well as import clearance and duties, as before long because the merchandise is loaded onto the transport vessel at the port of departure.

FOB solely applies to ocean or interior waterway transport. As such, the named place is often a port. It doesn't apply if the most carriage is via air, ground or rail.
This term is usually used for bulk payload (such as oil or grain) or freight from Asia.
lightbulb  
Seller pays all prices up to the main carriage, then emptor takes overall price responsibility.

FOB Incoterm Obligations
Seller’s Obligations
  • Goods, business invoice and documentation
  • Export packaging and marking
  • Export licenses and customs formalities
  • Pre-carriage and delivery
  • Loading charges
  • Delivery aboard the vessel at the named port of cargo
  • Proof of delivery
  • Cost of pre-shipment review
    Buyer’s Obligations
  • Payment for merchandise as laid out in the sales contract
  • Main carriage
  • Discharge and onward carriage
  • Import formalities and duties
  • Cost of pre-shipment review (for import clearance)