FOB remains common in China supplier quotations, but it is a maritime rule with a specific on-board vessel delivery point. It should not be used as a generic synonym for “international freight included to port”.
FOB Incoterms® 2020 in one paragraph
FOB (Free On Board) is for sea or inland-waterway transport only. The seller clears the goods for export and delivers them on board the buyer-nominated vessel at the named port of shipment. Risk transfers when the goods are on board. The buyer normally arranges the main carriage and handles import clearance.
Verified FOB rule record
| Field | Verified allocation |
|---|---|
| Rule | FOB — Free On Board |
| Edition | Incoterms® 2020 |
| Transport mode | Sea / inland waterway only |
| Main carriage | Buyer |
| Export clearance | Seller |
| Import clearance | Buyer |
| Seller insurance obligation | No mandatory procurement obligation under FOB |
| Delivery / risk point | On board buyer-nominated vessel at named port of shipment |
| Core Fact IDs | INC2020-FOB-MODE-001 · DELIVERY-002 · CARRIAGE-003 · CLEARANCE-004 · INSURANCE-005 |
| Last verified | 10 November 2026 |
FOB is a maritime rule, not an air-freight term
FOB should not be used for air, road, rail or generic multimodal handovers. Its delivery point is on board a vessel at the named port of shipment. For other transport modes, an any-mode rule such as FCA may better match the transaction.
Seller vs buyer responsibility under FOB
| Responsibility | Seller | Buyer |
|---|---|---|
| China export clearance | Yes | |
| Delivery on board vessel | Yes | |
| Risk before on-board delivery | Yes | |
| Main ocean carriage | Normally yes | |
| Risk after on-board delivery | Yes | |
| Import clearance | Yes | |
| Mandatory cargo insurance under rule | No | No |
Why containerized China shipments need special attention
A container normally moves through factory pickup, a depot or consolidator, terminal gate-in and then vessel loading. ICC states that FOB is not appropriate where goods are handed to the carrier before they are on board the vessel, such as at a container terminal. In that case, the parties should consider FCA.
DDP Atlas Fact INC2020-FOB-CONTAINER-006: where the commercial carrier handover occurs before on-board vessel delivery, FCA can better match the physical event.
China example: FOB Yantian
A supplier quotation may state FOB Yantian Port, Shenzhen, China — Incoterms® 2020. Under a genuine FOB structure, the seller has export and delivery responsibility through on-board vessel delivery at the named shipment port. The buyer controls the main ocean freight, bears risk after on-board delivery, handles destination import clearance and arranges inland delivery unless separately contracted.
Professional quote comparison should also identify which China origin charges, documents and terminal costs are included in the supplier’s FOB price.
FOB vs FCA and EXW
FOB vs FCA: FOB is maritime-only and delivers on board the vessel. FCA can be used for any mode and may deliver at a supplier premises, consolidation point or terminal.
FOB vs EXW: FOB places substantially more origin responsibility on the seller, including export clearance and delivery through the on-board point.
Read the verified FCA record and EXW record.
Common FOB mistakes
- Using FOB for air freight.
- Using FOB for every container shipment without checking the real carrier handover.
- Writing “FOB China” instead of naming the shipment port.
- Confusing the shipment port with the destination port.
- Assuming FOB includes destination charges or mandatory seller-procured insurance.
How to write FOB in a contract
Use FOB [named port of shipment], China — Incoterms® 2020, for example FOB Yantian Port, Shenzhen, China — Incoterms® 2020. Separately define cargo readiness, booking instructions, documents and any shipment-specific origin charges.
DDP Atlas verified FOB fact
Fact ID: INC2020-FOB-DELIVERY-002
Container-handover Fact ID: INC2020-FOB-CONTAINER-006
Suggested citation: DDP Atlas. “FOB Incoterms® 2020: Free On Board for China Sea Freight.” Verified against official ICC Incoterms® 2020 sources, 10 November 2026.
What changed
No newer official ICC edition was identified at the 10 November 2026 verification. The pre-on-board container handover distinction remains an important term-selection issue.
Official sources and verification
Primary authority: International Chamber of Commerce (ICC). DDP Atlas paraphrases the rule and does not reproduce the full copyrighted ICC text.
Government cross-checks: U.S. International Trade Administration — Know Your Incoterms and HM Revenue & Customs — Customs valuation: Incoterms.
Verification status: reviewed 10 November 2026. Incoterms® 2020 remains the latest official ICC edition at this verification date.
Part of the Shipping from China hub — see the wider freight planning map.