The price quoted which includes the cost of insurance; freight and all delivery charges to the importer’s warehouse is?

A. Free Alongside Ship
B. Franco
C. Free On Board
D. Free On Rail

Correct Answer:

Option C – Free On Board

Explanation

Free On Board, in short FOB, is a term frequently used in shipping terms where the seller quotes a price including the cost of delivering goods to the nearest port. In simple terms, FOB price means the buyer has to bear the shipping costs completely.