Who pays. Who carries the risk. In one picture.
Every trade contract hangs on three letters. Pick a term below and watch the journey light up. Navy legs are on the seller. Light legs are on the buyer. The red flag marks the exact moment risk changes hands, and it is not always where the money stops.
Any mode of transport
Sea and inland waterway only
FOB · Free On Board
SEA ONLY
SELLER MUST INSURE
RISK TRANSFERS
Seller pays
Buyer pays
Risk transfer point
Seller handles
Buyer handles
This is a simplified planning guide written by KWT. The binding rules are the ICC Incoterms® 2020 publication, and your sales contract always decides the named place, which changes everything. Not sure which term protects you? That conversation is free.
Negotiating a contract right now?
Tell us the term your buyer proposed. We will tell you what it really costs you.
Talk to KWT
Tell us the term your buyer proposed. We will tell you what it really costs you.