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FOB pricing stands for "Free on Board" pricing. This term is crucial in shipping agreements as it defines the point at which the ownership and responsibility for goods transfer from the seller to the buyer. Under FOB pricing, the seller is responsible for the costs and risks associated with transporting the goods until they are loaded onto a shipping vessel at a designated location. Once the goods are on board, the buyer assumes responsibility, including any freight costs.

Understanding FOB pricing is essential for businesses when negotiating shipping terms, managing supply chain logistics, and determining the final cost of goods. This pricing structure is often used in international trade, where it clarifies liability and transportation costs. In contrast, the other options provide terms that do not correspond to established shipping terminology or practices, which helps highlight why "Free on Board" is the accurate definition.