FOB (Free On Board)
The seller delivers the goods loaded on the vessel at the agreed origin port. From that point the buyer pays the freight, the insurance and everything after.
Under FOB the seller handles export clearance and gets the cargo onto the ship. Risk passes to the buyer the moment the goods are on board, so the buyer books and pays the ocean freight. FOB is the most common term when a buyer wants control of the freight and its cost. It applies to sea freight only.