When exporting electric heaters to Southeast Asia, choosing the right shipping terms is as critical as product quality itself. FOB (Free On Board) is one of the most commonly used Incoterms for sea freight, but many exporters misunderstand where their responsibility ends and the buyer's begins. This guide breaks down FOB terms in plain English, helping you make informed decisions when selling on Alibaba.com to ASEAN markets.
According to Freightos' 2026 Incoterms guide, FOB is a sea freight-only term where the seller delivers goods on board the vessel at the named port of shipment. The critical moment is the loading point: once goods cross the ship's rail, risk transfers from seller to buyer. This means the seller handles export clearance, inland freight to the port, and loading charges, while the buyer takes over main ocean freight, insurance, and all destination costs.
Minden Sourcing's 2026 FOB guide clarifies a common misconception: export port charges belong to the seller, not the buyer. Many new exporters mistakenly quote EXW (Ex Works) prices when buyers expect FOB, leading to disputes at the loading port. When you quote FOB Singapore or FOB Shanghai, you're committing to clearing goods for export and covering all costs until they're safely loaded onto the vessel.
On FOB, responsibility transfers to you once the container is loaded onto the vessel at the port of origin. Usually, export port charges belong to the seller, while costs after loading are the buyer's responsibility.
For Southeast Asian electric heater exporters on Alibaba.com, understanding FOB is essential because ASEAN buyers often prefer FOB terms. This gives them control over freight forwarder selection and insurance, potentially saving 10-15% compared to seller-arranged CIF (Cost, Insurance, and Freight) shipments. However, FOB requires buyers to have logistics expertise or trusted forwarder partnerships.

