FOB Terminology Grid

Freight Term Ownership Payment Terms Claims
Destination Title (ownership) passes to buyer at delivery point
specified by the buyer.
Seller pays freight charges. Buyer not invoiced for
freight.
Seller owns goods in transit. Seller files any
claims.
Destination,

Prepaid & Allowed
Title (ownership) passes to buyer at delivery point
specified by the buyer.
Seller pays freight charges. Buyer not invoiced for
freight.
Seller owns goods in transit. Seller files any
claims.
Destination,

Prepaid & Added
Title (ownership) passes to buyer at delivery point
specified by the buyer.
Seller pays freight charges. Buyer invoiced for
freight.
Seller owns goods in transit. Seller files any
claims.
(Origin)

Shipping Point
Title (ownership) passes to buyer at the seller’s ship
point
Seller pays freight charges. Buyer invoiced for
freight.
Buyerowns goods in transit.Buyer files any
claims.
(Origin)

Shipping Point,

Prepaid & Allowed
Title (ownership) passes to buyer at the seller’s ship
point
Seller pays freight charges. Buyer not invoiced for
freight.
Buyerowns goods in transit.Buyer files any
claims.
(Origin)

Shipping Point,

Prepaid & Charged
Title (ownership) passes to buyer at the seller’s ship
point
Seller pays freight charges. Buyer invoiced for
freight.
Buyerowns goods in transit.Buyer files any
claims.