Pronunciation: [fˈɒk] (IPA) 
The word "FOC" is a shortened form of the term "forecastle," referring to the upper deck of a ship. The spelling of "FOC" is a bit tricky because the "F" is pronounced like "ph," and the "O" is pronounced like "oh." The final "C" is silent, so the word is pronounced as "fok" (fɒk) and not "fok-castle." It is important to note that the spelling of "FOC" is informal and not commonly used in formal writing or communication.
FOC is an acronym that stands for "Free on board". It is a term used in international trade and shipping to indicate the point at which the responsibility and liability of the goods being transported are transferred from the seller to the buyer. FOC is commonly used in sales contracts, specifically in the context of shipping and delivery arrangements.
In the FOC arrangement, the seller is responsible for all costs and risks associated with delivering the goods to a specified point, such as a designated port. Once the goods are loaded onto the vessel for shipment, the risk of loss or damage passes from the seller to the buyer. At this point, the buyer becomes responsible for all further costs, such as transportation, insurance, and customs duties.
FOC is often followed by a specified location, such as FOB Shanghai or FOB New York. This indicates the exact point where the transfer of responsibility occurs. The location can vary depending on the agreement between the buyer and seller.
Understanding FOC is crucial for both parties involved in international trade as it clarifies their respective obligations and helps avoid any confusion or disputes. It ensures a smooth transition of ownership and accountability in the shipping process, promoting transparency and certainty in international business transactions.
