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International contracts also contain the international commercial term or the Incoterm. There are many main as well as secondary terms which help in denoting the responsibility and risk of the carrier, shipper, and consignee from the beginning to the end of the shipment. Earlier, there were about 13 such related terms in the Incoterms but the amended Incoterm 2010has reduced it to 11. These terms are globally recognized easing the business transactions which take place cross-board.Among all the terms framed by the International Chamber of Commerce, the FOB incoterms are the nike shoes one which gets widely used. FOB indicates freight on board or free on board .

Decades ago, there were no containers available for shipping the goods and thus people used any ship for carrying the load. However, with time, containers came into the picture and now loads are carried in them for transportation. Even today, several companies use the FOB term for containers without understanding the revisions that have been made by ICC in the scope. It is crucial that companies go through the amendments made at an interval of ten years in the terms related to international transactions.