free on board(redirected from Freight On Board)
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Related to Freight On Board: Incoterms, free on board
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.