Freight on Board (FOB) specifies which party (buyer or seller) pays for which shipment and loading costs, and/or where responsibility for the goods is transferred. For instance, “FOB shipping point” would mean that the buyer would start paying for transport from the time it gets shipped from the manufacturer. “FOB Cleveland” would mean that the seller is responsible for the product up until it arrives in Cleveland, after which it will be up to the buyer to cover shipping costs.