Glossary

Free on Board (... named port of shipment).

In FOB, the seller/exporter/manufacturer clears the goods for export and is responsible for the costs and risks of delivering the goods past the ship's rail at the named port of shipment.
The FOB term is used only for ocean or inland waterway transport.
The "named place" in FOB and all "F" terms is domestic to the seller.
Normal payment terms for FAS transactions are generally cash in advance and open account, and letters of credit.
The FOB term is commonly used in the sale of bulk commodity cargo such as oil, grains, and ore where passing the ship's rail is important. However, it is also commonly used in shipping container loads of other goods.
The key document in FOB transactions is the "On Board Bill of Lading".
Sellers and buyers often confuse the FOB term with FCA. FOB does not mean loading the goods onto a truck at the seller's place of business. FOB is used only in reference to delivering the goods past a ship's rail in ocean or inland waterway transport. FCA, on the other hand, is applicable to all modes of transport.