The price of a traded good excluding transport cost. It stands for "free on board," but is used only as these initials (usually lower case: f.o.b.). It means the price after loading onto a ship but before shipping, thus not including transportation, insurance, and other costs needed to get a good from one country to another. Contrasts with CIF and FAS.
Browse by Subjects
free on board
See All Related Terms »

BBB rating
holding cost
invoice price
comparative advantage