Free on Board Code (FOB)

The Free on Board Code designates the point at which the title passes for merchandise.  The terms are usually expressed as FOB Shipping Point or FOB destination. 

"FOB Shipping Point" means that the seller will load goods at the shipping point free of charge, but the buyer assumes title after loading. 

"FOB Destination" means that the buyer assumes title after the goods are delivered to the shipping destination.