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Asked a question 3 months ago

What is mean by FOB orders in textile industry

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SrinivasanChief Party Member
Co-Founder of KnitBrain International.

FOB is used for garment shipping terms 

What FOB Stands For

The acronym FOB, which stands for "Free On Board" or "Freight On Board," is a shipping term used in retail to indicate who is responsible for paying transportation charges. It is the location where ownership of the merchandise transfers from garment supplier to buyer. 

How it Works

The garment supplier pays the freight, and the buyer takes the title once it's been shipped. The buyer pays the transportation costs from the warehouse or vendor to the store. 

FOB terms of sale establish which party (vendor or retailer) will be liable for the transportation costs, which party is in control of the movement of the goods, and when (date/time) the title passes to the buyer. In most cases, the freight hauler or delivery company (such as FedEx, UPS, Conway) is not involved, but in some instances, the freight hauler is liable as well. A freight hauler is always liable for the damage it may cause in transit, though. 

If the FOB terms of sale indicate that it is "FOB delivered," then this implies that the shipper will be responsible for all of the carrier’s costs. If the terms of sale show "FOB origin," then this means that the buyer will take the title of the goods when they are shipped, and they will incur all the transportation costs from the shipping location to the final destination.

Here in the PDF document that you can  find detailed information about FOB15