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FOR price

bhavini sheth (Article Clerk) (65 Points)

25 February 2008

Can anyone pls explain these two terms to me?

1. FOR price

2. FOB value

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3 Replies

MOHIT MAHAJAN (LCS, ACA) (2050 Points)
Replied 25 February 2008

Free on Board (F.O.B.):
Under this term, the price of the good quoted by a seller includes transport, insurance and loading costs incurred until the merchandise is loaded on board the ship. The seller fulfils his obligations when the goods are boarded (i.e. have passed over the ship’s rail) at the named port of shipment. The buyer has to bear all costs and risks of loss or damage arising from the point of loading. The term FOB can only be used for sea or inland waterway transport.

FOR mean "Free on Rail" There is another term FOT "free on truck" These terms are synonymous since the word "truck" relates to the railway wagons. These terms are used when the goods are to be carried by rail.