FOB
Abbreviation with 2 meanings
| Stands for | Free on Board |
|---|---|
| Meanings | 2 |
| Categories | Business & Finance, Military |
FOB has two meanings. It stands for Free on Board (logistics, supply chain & trade) or Forward operating base (military term).
Meanings of FOB at a glance
| # | FOB stands for | Context |
|---|---|---|
| 1 | Free on Board | Business & Finance › Logistics, Supply Chain & Trade |
| 2 | Forward operating base | Military › Military Term |
1. Free on Board
Business & Finance · Logistics, Supply Chain & Trade Abbreviations
Sea and inland waterway Incoterms rule in which the seller clears the goods for export and loads them on board the vessel nominated by the buyer at the named port of shipment; risk passes once the goods are on board. The buyer pays ocean freight, insurance and everything after loading.
Example: The factory quotes $3.20 per unit FOB Ningbo, so add freight and duty to get our landed cost.
FOB is one of the oldest and most widely used trade terms, and "FOB price" is standard shorthand in sourcing quotes from Asia. The ICC recommends FCA instead for containerized cargo, because containers are handed over at the terminal before loading, leaving the seller at risk for something it no longer controls. FOB should always name a port of shipment, such as "FOB Shanghai." In US domestic sales, FOB has a separate, older meaning under the Uniform Commercial Code.
2. Forward operating base
Military · Military Term Abbreviations
Secured military base in or near a combat zone, used to support tactical operations with living quarters, dining, maintenance and command facilities. FOBs ranged from small outposts to sprawling bases in Iraq and Afghanistan.
Example: The patrol returned to the FOB after eight hours outside the wire.
Troops who rarely left the base were mocked as "Fobbits." Large FOBs offered fast food and gyms, while small ones had few comforts. Pronounced "fob." In commerce, FOB means free on board, a shipping term, and a key fob is a small device on a key ring.
Related abbreviations
More logistics, supply chain & trade abbreviations
- FCL – Full container load
- FEFO – First expired, first out
- FEU – Forty-foot equivalent unit
- FF – Freight forwarder
- FTL – Full truckload
- FTZ – Foreign-trade zone
- GRI – General rate increase
- GTIN – Global Trade Item Number
See all 106 logistics, supply chain & trade abbreviations →