Examples of FOBs in Usage

A U.S. electronics retailer, ABC Electronics, orders a shipment of smartphones from a manufacturer in Shanghai, China.
The contract specifies “FOB Shanghai Port.”
In this case, the seller (the manufacturer) is responsible for delivering the smartphones to the Shanghai Port and loading them onto the cargo ship.
Once the smartphones are loaded onto the ship, ownership and responsibility for the goods transfer to ABC Electronics.
ABC Electronics assumes responsibility for transportation costs, insurance, and any risks associated with the shipment from Shanghai to the United States.

A European fashion retailer, Fashion Trends Ltd., purchases a shipment of clothing from a Los Angeles-based supplier in the United States.
The contract specifies “FOB Los Angeles Warehouse.”
In this case, the seller (the supplier) is responsible for not only delivering the clothing to Fashion Trends Ltd.’s warehouse in Los Angeles but also for covering the transportation and insurance costs to get the goods there.
Ownership and responsibility for the clothing do not transfer until the goods arrive at Fashion Trends Ltd.’s warehouse in Los Angeles.
The supplier arranges and pays for the entire logistics chain, including shipping and insurance.

A seafood exporter in Norway, Nordic Seafoods AS, ships a large quantity of frozen salmon to a distributor in Japan.
The contract specifies “FOB Stowed.”
In this case, Nordic Seafoods AS, the seller, not only delivers the salmon to the port but also takes extra care in properly stowing and securing the frozen salmon in the shipping containers to ensure it remains frozen during transit.
The distributor in Japan assumes ownership and responsibility once the salmon is loaded and stowed on the vessel.
If there are any issues during transit related to the condition of the salmon, Nordic Seafoods AS is responsible for addressing them.

FOB | Full Form, Types, Examples and Usage