In a(n) ________________ incoterm, delivery takes place when the goods pass the ship’s rail at the named port of shipment.

The correct answer is based on the International Commercial Terms (Incoterms) which are internationally recognized rules that define the responsibilities of buyers and sellers in the shipping of goods. In the context of shipping and logistics, "FOB" stands for "Free on Board." When goods are sold under FOB terms, delivery is considered to take place when the goods pass the ship's rail at the named port of shipment. This means that the seller's responsibility and risk transfer to the buyer as soon as the goods are loaded onto the ship, making it an important point of transaction.

Understanding this concept is crucial because it affects who is responsible for things like insurance and freight costs at different stages of transport. In contrast, other Incoterms like EXW (Ex Works), CIF (Cost, Insurance, and Freight), and DYT (which is not a standard Incoterm) have different definitions and structures for the transfer of responsibilities, impacting how risks and costs are allocated between the seller and the buyer.