The delivery and risk point
Under FOB, delivery and risk transfer occur when the goods are on board the buyer-nominated vessel at the named port of shipment. This does not establish when legal title passes or when payment is due; those require separate contract terms.
Before vessel nomination
The buyer and seller should align the parcel size, laycan, loading terminal, vessel acceptance criteria and nomination deadlines. Confirm that the terminal can receive the nominated vessel and that the cargo can be released within the agreed window.
Inspection and loading records
Agree sampling, quantity measurement and which reports are needed for invoicing and acceptance. Define treatment of shore-versus-vessel differences. The parties should also allocate delay, demurrage and operational costs explicitly.
Tank transfers require separate terms
A tank-to-tank transfer is not a vessel loading event. Do not rely on “FOB tank-to-tank” as a complete procedure. Specify the physical transfer point, measurement, title, risk and terminal release authority in terms that fit the actual operation.
Buyer readiness
Review buyer requirements and compare CIF responsibilities. For diesel inquiries, include the complete EN590 specification as well as the preferred loading location.
Sources & further reading
Technical references support the definitions above. Consult the applicable standard and qualified advisers for transaction-specific decisions.