Details of risk transfer for FOB delivery

FOB delivery is a common delivery term in international trade, meaning that the seller delivers the goods to the buyer at the designated port of shipment and is responsible for loading the goods onto the means of transport (usually a ship).

The main risk transfer details for FOB delivery are as follows:

1. Place of delivery: In FOB terms of delivery, the Seller has the responsibility to deliver the goods to the Buyer at the named port of loading, that is, the Seller’s responsibility terminates before the goods are loaded on the means of transport. The buyer shall bear all costs and risks from the departure of the goods from the port of loading to the final destination.
2. Expenses: Under FOB delivery terms, the seller shall deliver the goods to the loading port and bear the expenses related to loading the goods on the means of transport, such as loading charges, dock charges, etc. The buyer shall bear the transportation, insurance, customs clearance, and other expenses from the loading port to the destination.
3. Risk transfer: Under FOB delivery conditions, the ownership and risk of the goods pass to the buyer when the goods are loaded on the carrier. Once the goods have been properly loaded onto the vehicle, any damage or loss of the goods will be the responsibility of the buyer.
4. Insurance: The seller has no obligation to purchase insurance for the goods under FOB delivery conditions, so the buyer usually needs to purchase transportation insurance to protect the risks that the goods may encounter during transportation.
5. Document delivery: Under FOB delivery conditions, the seller needs to provide the buyer with the necessary shipping documents, such as shipping notice, invoice, bill of lading, etc., so that the buyer can complete the customs clearance and delivery procedures after the arrival of the goods at the destination.

In short, under FOB terms of delivery, the seller is responsible to deliver the goods to the named loading port and bear the cost of loading the goods. Once the goods are loaded on the carrier, the ownership and risk will be transferred to the buyer, who needs to bear the costs and risks of the goods during the transportation process, including transportation, insurance, customs clearance, etc. Therefore, in international trade, buyers and sellers need to clearly understand the specific details of FOB delivery conditions to ensure smooth transactions and reduce possible risks.

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