Incoterm FOB describes?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Prepare for the FBLA Introduction to Supply Chain Management Test with flashcards and multiple-choice questions. Each question includes hints and detailed explanations. Maximize your success rate!

Multiple Choice

Incoterm FOB describes?

Explanation:
FOB stands for Free On Board, and it is used for shipments by sea or inland waterways. The seller’s responsibility is to bring the goods to the named port of shipment, load them onto the vessel, and clear export. The moment the goods are actually on board the vessel, the risk of loss or damage transfers to the buyer. From that point, the buyer handles the main ocean carriage and any insurance, plus all costs after loading such as unloading and import duties. This setup clarifies who pays for what and when risk shifts during the journey. It’s specifically for sea transport and doesn’t automatically include insurance or cover risk before loading.

FOB stands for Free On Board, and it is used for shipments by sea or inland waterways. The seller’s responsibility is to bring the goods to the named port of shipment, load them onto the vessel, and clear export. The moment the goods are actually on board the vessel, the risk of loss or damage transfers to the buyer. From that point, the buyer handles the main ocean carriage and any insurance, plus all costs after loading such as unloading and import duties. This setup clarifies who pays for what and when risk shifts during the journey. It’s specifically for sea transport and doesn’t automatically include insurance or cover risk before loading.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy