re: Ann: Wilcherry Hill Project Feasibility U... Under the Incoterm standard published by the International Chamber of Commerce, FOB stands for "Free On Board", and is always used in conjunction with a port of loading.[1]
Indicating "FOB port" means that the seller pays for transportation of the goods to the port of shipment, plus loading costs.
The buyer pays cost of marine freight transport, insurance, unloading, and transportation from the arrival port to the final destination. The passing of risks occurs when the goods pass the ship's rail at the port of shipment.
http://en.wikipedia.org/wiki/FOB_(shipping)
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