Free On Board
Incoterms® 2020 · Morocco Guide
FOB is one of the most widely used Incoterms worldwide for sea transport. The seller delivers goods on board the vessel nominated by the buyer at the agreed port of shipment. From that point, risk and costs pass entirely to the buyer.
Risk transfer
Risk transfers to the buyer once goods are on board the vessel at the port of shipment.
Seller's obligations
- Deliver goods on board the vessel at the agreed port
- Handle export customs clearance
- Provide necessary transport documents
- Pack and mark the goods
Buyer's obligations
- Nominate the vessel and notify the seller
- Pay sea freight
- Insure the goods (optional but recommended)
- Handle import customs clearance
- Pay import duties and taxes
When to use FOB?
FOB is ideal when the buyer can negotiate their own sea transport and insurance contracts. Widely used for bulk exports (phosphates, agricultural products, textiles) and imports of industrial raw materials.
🇲🇦 FOB in Morocco
FOB is very common in Morocco, particularly for phosphate exports (OCP), agricultural products (citrus, tomatoes) and textiles to Europe. Casablanca port (TangerMed for containers) is the main FOB loading point in Morocco.
FAQ
What is the difference between FOB and FCA for sea transport?+
The ICC now recommends FCA over FOB for containerized transport, because with FOB risk passes 'on board' the vessel — an outdated concept for containers loaded at terminals. FCA allows the seller to hand over the container at the shipping company's terminal, which better reflects operational reality.
Does the FOB seller need to provide the bill of lading?+
No, under FOB the buyer contracts transport and must obtain the Bill of Lading from the shipping company. The seller can assist the buyer in obtaining necessary documents.