FOB factory

**FOB Factory**

The term “FOB Factory” refers to a shipping term used in international trade that stands for “Free On Board Factory.” It indicates that the seller delivers goods at their factory or production site, and the buyer assumes responsibility for transportation costs and risks from that point onward. This term is commonly used in manufacturing and export industries to clarify the point at which ownership and liability transfer from the seller to the buyer. Understanding FOB Factory is essential for businesses involved in global supply chains and logistics.