Hi Julius, The acronym stands for Freight On Board. This means that your price only includes getting your products "on board" the truck but not the cost of transportation from your facility to the destination. It must still be discussed who will arrange the shipping. The main advantage to this is that it limits the seller from the ups and downs of freight costs, which right now are UP quite a bit. The main downside is that the seller loses the ability to influence the price of their products to consumers. For example, some large distributors that are on FOB programs will take the most expensive freight cost and use that set their selling price to all customers. Also, some customers may use freight as a profit center which would again add costs that would be passed on to your retail consumers.
Best, Jack Acree
