Full formBusiness & Corporate
FOTstands forFree on Truck
Full Form of FOT
What is FOT?
FOT (Free on Truck) is an international trade term used under the Incoterms rules, indicating that the seller delivers the goods to a truck at a specified location (e.g., factory, warehouse) and loads them. From that point, the buyer assumes all risk and cost for transportation, including insurance and further carriage. In India, FOT is commonly referenced in logistics contracts, domestic freight agreements, and export-import documentation, particularly when goods are moved by road from inland container depots or manufacturing hubs to ports. The term is used by freight forwarders, customs brokers, and procurement teams to clearly define transfer of liability. Unlike FOB (Free on Board), which applies to sea freight, FOT specifically covers truck transport. While not as widely used as FOB or CIF in Indian trade, FOT appears in supply chain contracts, especially for pre-carriage to a terminal. Students preparing for logistics, foreign trade, or banking exams may encounter FOT in questions on Incoterms or shipping terms. Understanding FOT helps clarify cost-sharing and risk transfer in domestic road transport, a critical component of India's growing logistics sector.
FOT का फुल फॉर्म
ट्रक पर मुक्त
Example
As per the sales agreement, the consignment was supplied on FOT basis from the Delhi warehouse, and the buyer arranged onward trucking to the Nhava Sheva port.
FOT — frequently asked questions
What is the full form of FOT?
The full form of FOT is Free on Truck, an Incoterm where the seller delivers goods loaded on a truck at a named place, after which risk transfers to the buyer.
Is FOT the same as FOB in Indian trade?
No, FOT applies to road transport (truck), while FOB (Free on Board) is used for sea freight. In India, FOT is more common for domestic pre-carriage to ports.
Where is FOT commonly used in India?
FOT is used in logistics contracts, supply chain agreements, and export documentation, especially when goods are moved by truck from factories to terminals or ICDs.