What Does F.O.B Mean? - Japanese Car Auctions - Integrity Exports (2024)

FAQs

What Does F.O.B Mean? - Japanese Car Auctions - Integrity Exports? ›

FOB = Free On Board. This is the total price including all costs paid to export the vehicle. It consists of the actual car cost plus the agent's fee, which will vary depending on the location and vehicle cost.

Literally Means "Free On Board" The term F.O.B. literally means Free On Board and is a term from the shipping industry. The technical definition is that the seller pays for transportation of the goods to the port of shipment, plus loading costs, and then the buyer is responsible for the marine freight and insurance.

The FOB (Free On Board) price is the price of goods at the frontier of the exporting country or price of a service provided to a non-resident. It includes the values of the goods or services at the basic price, the transport and distribution services up to the frontier, the taxes minus the subsidies.

Free on Board (FOB) is a shipment term that defines the point in the supply chain when a buyer or seller becomes liable for the goods transported. Purchase orders between buyers and sellers set FOB terms and help determine ownership, risk, and transportation costs.

FOB, Free On Board, is a transportation term that indicates that the price for goods includes delivery at the Seller's expense to a specified point and no further.

A traditional key fob is a small electronic device that enables access to the car and allows control over some of its functionalities without a physical key. As an accessory that accompanies the physical car key, it plays a crucial role as a transmitter in a remote keyless system (RKS).

First of all, FOB – or F.O.B. – stands for Free On Board. It is the point in the supply chain where the seller relinquishes ownership, and the buyer accepts ownership of products purchased in a specific transaction.

For example, if a buyer in Vancouver buys basketball shoes from a seller in Chengdu, China, he must pay for the transport costs from the seller's warehouse to the port, cost of loading goods onto a ship, and all transport costs from the shipping port to his warehouse/store.

The acronym “FOB” is an internationally accepted incoterm published by the International Chamber of Commerce (ICC). It means “Free on Board,” and it is often used to signify a point in the supply chain where the seller passes ownership to the buyer of the shipment.

FOB is a viable agreement for most bulk cargo that will be shipped by sea. Buyers and sellers often confuse FOB by understanding the shipment can be sent by any mode of transportation; this is not correct. The International Commerce Center (ICC), explains FOB is only viable for sea and inland waterway shipments.

Why do some buyers prefer FOB terms? ›

Advantages and disadvantages of FOB

Cost control - FOB gives the buyer more control over transportation and the associated costs after the goods are on board the vessel. Ability to choose freight forwarders - FOB enables the buyer to choose their preferred freight forwarder and negotiate competitive shipping rates.

FOB is the term used to explain what the costs are included when the price of the vehicle is quoted. In the case of exporting a car, as well as the initial car cost (that is the cost of the car in Japan without any other charges) the price is usually quoted as FOB.

With FOB shipping point, the buyer pays for shipping costs, in addition to any damage during shipping. The buyer is the one who would file a claim for damages if needed, as the buyer holds the title and ownership of the goods.

Free on Board (FOB) indicates the transfer of ownership of goods and determines liability for damages during shipping. “FOB Origin” signifies that the buyer assumes risk once the seller ships the product. “FOB Destination” means the seller retains risk until the goods reach the buyer.

: a short strap, ribbon, or chain attached especially to a pocket watch. 2. : a small ornament worn on a watch chain. 3. or key fob : an object attached especially to a key chain or key ring.

Free on board, often abbreviated as “F.O.B.,” applies to the sale of goods and indicates that purchased property will be placed on board a vessel for shipment at a designated place without expense to the buyer for packing, potage, cartage, etc.

The phrase fresh off the boat (FOB), off the boat (OTB), are sometimes-derogatory terms used to describe immigrants who have arrived from a foreign nation and have yet to assimilate into the host nation's culture, language, and behavior, but still continue with their ethnic ideas and practices.

→ free on board : At the FOB point the risk of loss passes from the seller to the buyer.