Free On Board/Fresh Off the Boat. FOB is an import/export term relating to the point (outgoing port or airport usually) at which responsibility for goods, insurance, and costs of transport, passes from seller (exporter) to buyer (importer). The FOB expression originates from the meaning that the buyer is free of liability up to the point that the goods are loaded on board the ship. In recent years FOB is used less specifically, even to the extent that other meanings are inferred from the acronym, most commonly Freight On Board (which appears in many online dictionaries and acronyms listings), and I've also heard of Fixed On Board. These distortions reflect the fact that the FOB principle is not readily recognised or understood as the Free On Board original (and quite old) meaning. When language doesn't make obvious sense people are apt to change it. If you use or hear the term used in a shipping context it's sensible to clarify precise meaning. More explanation about FOB in the financial terms section. Aside from the shipping usage, FOB is a slang and derogatory expression Fresh Off the Boat, (thanks Clint S) referring, usually insultingly, to a newly arrived person or group lacking in local experience/knowledge, which alludes strongly to the notion of immigrants coming by sea into a new country.
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