DEFINITION
FOB is a sea and inland waterway rule. The seller clears the goods for export and delivers them on board the vessel the buyer has nominated, at the named port of shipment. From that moment the buyer carries the risk and pays the freight, insurance and everything after.
FOB is widely quoted for goods from Asia, as in "FOB Shenzhen". It fits cargo loaded directly on the ship. For containers, which are handed to the carrier at a terminal days before loading, FCA is more accurate, because under FOB the seller stays at risk until the goods are actually on board.
FOB is often used loosely to mean "price without freight". In a contract, name the port and the Incoterms version.
HOW KOLIBRA HELPS
Kolibra stores the Incoterm and port on each purchase and adds the freight and charges you pay afterwards to the landed cost per piece, so an FOB purchase price turns into a real cost.