# Incoterms FOB FOB under Incoterms 2020: onboard delivery at the shipment port, risk exceptions, carriage, costs and documentary limits. Reviewed: 2026-10-30 Tags: commercial, incoterms, shipping ## Meaning and named port **FOB (Free On Board)** under Incoterms® 2020 concerns delivery aboard the buyer-nominated vessel at the shipment port. The seller brings the goods to that port, loads them aboard and completes applicable export formalities. Ordinary risk transfer occurs aboard, before arrival at destination. The buyer arranges and pays for the onward sea carriage and handles applicable transit and import formalities. [ICC Academy, FOB/FAS explanation](https://academy.iccwbo.org/incoterms/article/incoterms-2020-fas-or-fob/). The reference form is **FOB [named port of shipment] Incoterms® 2020**. The port identifies shipment, not destination; a precise loading point removes ambiguity. The year identifies the incorporated edition. [ICC, incorporation and named-place guidance](https://library.iccwbo.org/clp/clp-incoterms-qa-2020.htm?AGENT=ICC_HQ). FOB belongs to the sea and inland-waterway rules. Delivery to a container terminal before vessel loading is a different event; FCA addresses delivery to a buyer-nominated carrier at an agreed place and can apply across transport modes. At the seller's premises FCA delivery includes loading the collecting vehicle; elsewhere it is delivery ready for unloading from the seller's vehicle. These distinctions explain the terms without selecting one for a particular shipment. [ICC Academy, FCA/FOB comparison](https://academy.iccwbo.org/incoterms/article/incoterms-2020-fca-or-fob/). ## Notices and exceptions to onboard risk transfer FOB B10 requires sufficient buyer notice of vessel, loading point, transport-security requirements and any selected delivery date within the agreed period. B3 can place risk on the buyer before loading if notice fails, the vessel arrives too late for delivery, refuses the goods or closes for cargo early. Goods must be clearly identified to the contract. The starting time follows the agreed date; absent that, the buyer-selected date; absent that, the end of the agreed delivery period. B9 separately allocates resulting additional costs. [ICC 2020 FOB, B3/B9/B10](https://library.iccwbo.org/content/tfb/BOOKS/BK_0049/BK_0049_05_RulesSea.htm). ## Loading charges, carriage and documents FOB also covers procuring goods already delivered aboard. The seller provides the contract-conforming commercial invoice and ordinarily bears costs through onboard delivery, subject to B9 exceptions. Neither party owes the other an insurance contract under FOB. The seller supplies usual delivery proof at its cost; if that is not a transport document, assistance obtaining one is at buyer request, risk and cost. Agreed seller-arranged carriage remains at buyer risk and cost. [ICC 2020 FOB, A1–A6, A9/B9](https://library.iccwbo.org/content/tfb/BOOKS/BK_0049/BK_0049_05_RulesSea.htm). **Synthesis:** an invoice headed “terminal handling” does not itself establish which operations occurred before delivery or which costs the sales rule allocates. Carrier billing and the sales-contract allocation need distinct interpretations; payment of a charge alone does not establish the risk-transfer event. ICC consolidates each rule's costs in A9/B9. [ICC, cost-article explanation](https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/). An onboard bill of lading is a documentary matter distinct from choosing FOB. Incoterms 2020 FCA allows agreement for buyer instructions to the carrier to issue an onboard bill to the seller after loading. [ICC, FCA documentary change](https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/). ## Comparison with CFR and CIF FOB, CFR and CIF share onboard shipment delivery. Under CFR/CIF the seller contracts for carriage to the named destination port, although risk transfers at shipment. [ICC, F/C rules and delivery](https://library.iccwbo.org/clp/clp-incoterms-qa-2020.htm?AGENT=ICC_HQ). CIF additionally obliges the seller to obtain cargo insurance; its 2020 default is Institute Cargo Clauses (C) or similar minimum cover, with higher cover possible by agreement. This does not describe FOB insurance obligations. [ICC, CIF coverage](https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/). ## Contract and evidence limits Incoterms rules allocate delivery obligations, costs and risk within an incorporated sale contract. They do not determine ownership transfer, payment mechanics, remedies or governing law, and do not override mandatory domestic or international law. This generic explanation establishes no customer's agreed terms, tax treatment or territorial compliance. [ICC, scope and contract limits](https://library.iccwbo.org/clp/clp-incoterms-qa-2020.htm?AGENT=ICC_HQ). This draft covers the **2020 edition**, using the publicly accessible ICC Digital Library FOB text and ICC explanatory pages; it does not claim review of the complete purchased volume. The Academy articles by Miguel Angel Bustamante Morales are dated 13 May 2025 (FOB/FAS) and 19 November 2024 (FCA/FOB). They are guest commentary and expressly do not necessarily represent ICC or Academy policy. No individual shipment, insurance policy, letter of credit, port tariff or jurisdiction-specific contract has been evaluated.