What is fob shanghai?

Free on Board (FOB) Shanghai is an international trade term that specifies that the seller is responsible for the cost and risk of the goods up until the point when they are loaded on board a ship at the port of Shanghai. The buyer is then responsible for all costs and risks associated with the goods from that point on.

Incoterm FOB Shanghai means:

- The seller must deliver the goods to a named port in Shanghai and load them on board the vessel designated by the buyer.

- The buyer pays all costs associated with transporting the goods from Shanghai to their final destination, including freight, insurance, and customs duties.

- The seller is only liable for any damage or loss to the goods that occurs before they are loaded onto the vessel.

- Once the goods are on board the vessel, the risk of loss or damage is transferred to the buyer.

FOB Shanghai is a common Incoterm used in international trade, and it can help to protect both buyers and sellers by clarifying who is responsible for the goods and the associated costs and risks.