Free On Board (FOB) is a shipping term indicating that the seller is responsible for the goods until they are loaded onto the designated transportation vessel at the specified port of shipment. Once the goods are loaded, ownership and risk transfer to the buyer, who is responsible for transportation costs, insurance, and any damages or losses during transit. FOB terms are commonly used in international trade contracts to define the seller's and buyer's obligations, liabilities, and shipping arrangements. They specify the point at which ownership, title, and risk of loss transfer between parties and affect the allocation of transportation costs and insurance coverage.