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free on board

   Also found in: Dictionary/thesaurus, Medical, Financial, Idioms, Encyclopedia, Wikipedia, Hutchinson 0.01 sec.

free on board (FOB) adj. a reference to the place where purchased goods will be shipped without transportation charge. Free on board at the place of manufacture shows there is a charge for delivery. Example: if an automaker in Detroit sells a car "FOB Detroit," then there will be a shipping charge if delivery is taken anywhere else. If the contract reads "FOB New Orleans," then the auto will be shipped to that city without charge, but with charge for delivery from New Orleans to somewhere else.


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The service, known as Free on Board (FOB) Delivered, uses actual data from major forest product industry players to establish credible benchmark costs for delivered raw materials, including every variable associated with getting a tree removed from the forest and delivered to a mill.
 
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