When the transaction is concluded under FOB terms, the seller is responsible for paying all costs before the goods are loaded on board. However, there is no unified interpretation of the concept of “loading” in various countries, and the customs or practices of various countries are not completely consistent. If liner transportation is adopted, the shipowner is responsible for loading and unloading, and the loading and unloading costs are included in the liner freight, which is naturally borne by the buyer who is responsible for chartering the ship; while in charter transportation, the shipowner generally does not bear the loading and unloading costs. This requires clarifying who should bear the various costs of loading. In order to explain the burden of loading costs, both parties often add additional conditions after the FOB terms, which forms a deformation of FOB) mainly including the following:
FOB Liner Terms (FOB Liner Terms), which means that the seller does not bear the loading costs.
②FOB Delivery under the Hook (FOB Under Tackle), which means that the seller only delivers the goods to the place where the ship’s hook can reach, and does not bear the loading and stowing costs.
③FOB Stowed (FOB Stowed), which means that the seller bears the loading and stowing costs. ④FOB includes trimmed cargo (FOB Trimmed), which means the seller bears the cost of loading and trimming.
⑤FOB includes stowed and trimmed cargo (FOB Stowed and Trimmed), which means the seller bears the cost of loading, stowing and trimming.
The above variations of FOB are only to indicate who bears the cost of loading, and do not change the place of delivery of FOB and the boundary of risk division.