FOB meaning in oil and gas

Term used to describe the terms on which goods are being sold, most commonly referring to shipments by sea. FOB means the vendor is responsible for loading the cargo onto the vessel, with ownership and risk transfering to the buyer as the good cross the ships 'rail' The buyer is responsible for freight and destination charges. The other most common term is CFR (Carriage and Freight) where the vendor pays for the freight and destination charges (excl taxes, duties, etc..) However, ownership and risk still passes to the buyer on loading.