FOB (Free on Board) is one of the most commonly used Incoterms in international trade, especially for heavy machinery like industrial sewing machines. However, many exporters misunderstand its scope and application. This guide breaks down FOB responsibilities specifically for sewing machine exporters in Southeast Asia who sell on Alibaba.com.
Critical Industry Insight: According to Freightos and Maersk, FOB is only applicable to sea or inland waterway transport and is not recommended for containerized cargo. For container shipments (which most sewing machine exports use), FCA (Free Carrier) is the correct Incoterm. Despite this, FOB remains widely used in practice, so understanding it is essential for any exporter [1][2].
FOB vs FCA: Which Incoterm Should Sewing Machine Exporters Use?
| Aspect | FOB (Free on Board) | FCA (Free Carrier) | Recommendation for Sewing Machines |
|---|---|---|---|
| Transport Mode | Sea/inland waterway only | Any mode (sea, air, road, rail) | FCA — most exports use containers |
| Risk Transfer | When goods loaded on vessel | When goods handed to carrier at named place | FCA — clearer for container yards |
| Export Clearance | Seller responsible | Seller responsible | Both same |
| Loading Costs | Seller pays until on vessel | Seller pays until handed to carrier | FCA — more predictable costs |
| Container Suitability | Not recommended | Specifically designed for containers | FCA is industry best practice |
| Alibaba.com Usage | Common but outdated | Increasing adoption | Consider FCA for new contracts |
For Southeast Asian sellers on Alibaba.com, the practical difference matters: under FOB, you're responsible for getting the sewing machines to the port, clearing export customs, and paying all origin port charges until the container is loaded on the vessel. Under FCA, you deliver to a named place (often your factory or a nearby container yard), and the buyer's freight forwarder takes over from there.

