A container goes overboard in the South China Sea. Or clears customs with a $40,000 duty bill nobody budgeted for. Or arrives at your dock damaged and nobody can agree whose insurance pays. In every one of those situations, the first question is the same: which Incoterm was on the purchase order? FOB — Free On Board — means the supplier's job ends when the goods are loaded onto the vessel at the origin port. From that moment, the risk is yours. You're paying freight, you're a