FOB Destination
Freight On Board (FOB) is a term used in the shipping and handling of goods. It indicates that the seller has the responsibility for delivering the goods to a specific destination, usually a port, and pays for the freight charges. The buyer takes on the responsibility for paying for any further transport once the goods have arrived at their destination.
FOB Destination is often used when the buyer and seller are located in different countries, or when the shipment is going to a remote location.
In other words, FOB Destination means that the title of the goods passes from the seller to the buyer at the destination and that the seller is responsible for paying all freight charges up until that point. The buyer then takes on responsibility for any further transport costs.
It is important to have a clear understanding of who is responsible for what so that there are no misunderstandings.
Related Links
FOB (shipping)
FOB destination — AccountingTools
Who Pays the Freight Cost When the Terms Are FOB Destination?
What Does FOB Mean in Shipping? – Freightquote
Free on Board Shipping vs. Free on Board Destination: What’s the Difference?
FOB Terminology – Destination Point
Freight On Board – Understanding How FOB Works in Shipping
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