What does the shipping term "FOB" indicate?

A) Fee on board
B) Fee on basis
C) Freedom of board
D) Free on board
E) Free of bailment

Shipping Term

Contractual terms between a seller and buyer indicating the delivery details, responsibility for goods, and the point at which risk transfers from one party to the other during transport.

FOB

An incoterm standing for "Free On Board," indicating that the seller bears delivery costs and risk until the goods are loaded on a vessel at the specified shipment point.