<P> With the advent of e-commerce, most commercial electronic transactions occur under the terms of "FOB shipping point" or "FCA shipping point". </P> <P> Some sources claim that FOB stands for "Freight On Board". This is not the case . The term "Freight On Board" is not mentioned in any version of Incoterms, and is not defined by the Uniform Commercial Code in the USA . Further to that, it has been found in the US court system that "Freight On Board" is not a recognized industry term . Use of the term "Freight On Board" in contracts is therefore very likely to cause confusion . </P>

What is fob point on a purchase order