What does FOB mean?
 

I'm looking for a truck In JApan and all the ads have a price "FOB" WTF does it mean?

www.google.com

"define: fob"

at a named port of export where the seller quotes the buyer a price that covers all costs up to and including the loading of goods aboard a vessel.

If its fob Japan that means they'll pay to get it on a boat in Japan, but not to America. Fob America would obviously mean they'd pay for the trip.... at least thats MY understanding from the definition I just read.

My asian friends refer to people who look like asian tourists as FOB or otherwise "Fresh Off the Boat". Not sure if this is the same thing with cars.

Thanks Jinn.

I didn't know you could get definitions from google like that.

FOB Japan, means the price and insurance is covered until the car passes over the railing of the vessel upon which it will travel to you. And I mean over the railing, if the gangplank breaks, and the car hangs on the railing before falling, they cover it if it falls off the boat, but not if it falls onto the deck... So basically, you have to pay for the actual cost of freight, unloading, clearing, etc., when it reaches the final destination.

And FOB does not apply to the end destination, JinnKai, if its paid for and covered up to the port nearest you, it would be CIF "Cost Insurance and Freight" - look up INCO Terms on google. http://www.iccwbo.org/incoterms/preambles.asp

- oh, I work for a company that sells cars globally...

from when I was in law classes... it helps to define when risk and liability passes from seller to buyer.

so if goods were damaged prior to "crossing the ship's rail" then the seller would still be liable even if the buyer had already sent payment in full.

Damn, Cynthetiq just beat me to it. He's got it absolutely correct. I deal with FOB day in and day out. Most vendors would love if I wrote a Purchase Order for "FOB Factory" instead of "FOB Destination". That means that technically I'm responsible for the goods from the moment the Purchase Order terms are accepted, including arangement of shipping, and any, and all, damage incured. FOB Destination means that I don't really "own" the goods until they are delivered, and if the goods are damaged when they arrive at our plant, all we have to do is refuse delivery, and it goes back. No reprocussions on our part.

It really sounds more complicated than what it is.

what does WTF mean?

;) j/k

I think it serves to place liability on the shipper more than the receiver.

Shouldn't that be "WTF is WTF?"

In the UK we'd call "FOB Factory" Ex-Works (i.e. yours at the factory gate).

I've had to deal with a number of complaints where couriers WE'd organised trashed the goods in transit because we don't operate Ex-works pricing.

I'm with B O'R on that one. :D

wikipedia anyone? :D

Ya know -- a few years ago FOB was a TLA (three letter acronym) for Friend of Bill (as in Clinton ... not O'Rights).

Which is completely different than Friend of Bill W, right? :D

Would you like to share a bottle of wine my dear? :D

Ooops...was that insensitive?