free on board (FOB)
adj. referring to purchased goods shipped without transportation charge to a
specific place. Free on board at the place of manufacture shows there is a
charge for delivery. Example: if an automaker in Detroit sells a car "FOB
Detroit," then there will be a shipping charge if delivery is taken anywhere
else. If the contract reads "FOB New Orleans," then the auto will be shipped
to that city without charge, but with charge for delivery from New Orleans
to somewhere else.
