Nautical Term: FOT
Definition of FOT
Free On Truck, often abbreviated as FOT, is a term used in international trade to indicate that goods have been loaded on a carrier’s truck or vessel, and the transportation cost up to that point is included in the sale price. For instance, a buyer from another country has agreed to purchase 100 units of a product from a seller. The sale agreement specifies that the price of each unit is $10, and that the goods are FOT. Therefore, the seller is responsible for loading the goods onto a carrier’s truck or vessel, and the transportation cost up to that point is included in the sale price, which amounts to $1,100 for 100 units of the product.
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