CSEET · Business Communication · Common Business Terminologies
In international trade, a quotation that reads 'FOB Mumbai' means the seller's price includes delivery of the goods up to which point?
FOB Mumbai means the seller delivers the goods by placing them on board the vessel at Mumbai port. Up to that point the seller bears the costs and risks; after loading, the buyer takes over responsibility for freight and transit risk.
- APlacing the goods on board the vessel at Mumbai portCorrect
- BThe buyer's warehouse at the destination
- CThe seller's factory gate
- DThe destination port after unloading
Explanation
FOB (Free on Board) means the seller bears cost and risk until the goods are loaded on the ship at the named port, here Mumbai. Delivery to the buyer's warehouse or the destination port would need terms such as DAP or CIF-type pricing with further obligations. Factory gate delivery corresponds to Ex-Works.
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