FOB Terminology - Shipping Point

FOB SHIPPING POINT (ORIGIN)

 

• Implies that the buyer assumes title and owns the goods in transit, pays the freight bill and handles any necessary claims for loss or damage.
• Ownership changes when items are shipped.

 

FOB Shipping Point, Freight Allowed

 

• Title passes buyer when goods leave the seller's dock
• Seller pays freight charges
• Seller bears freight charges
• Buyer owns goods in transit
• Buyer files claims, if any

 

FOB Shipping Point, Freight Collect

 

• Title passes to buyer when goods leave the seller's dock
• Buyer bears freight charges
• Buyer pays freight charges when goods received
• Buyer owns goods in transit
• Buyer files claims, if any