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QuoteWerks Knowledgebase Topic (Article ID 5278)
What does FOB mean?This information applies to : |
Article ID 5278 Created/Updated April 6, 2004 Category
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What does FOB mean? Solution: The following NAEB information explains the purchase order shipping cost. FOB Shipping Means Free on Board-Shipping Point. Title (ownership) passes to the buying organization once the product crosses from the seller's dock to the carrier's truck. The buying organization typically pays the carrier for the shipping cost. The risk of loss (that is, if the product is lost or stolen somewhere between the seller's location and the buyer's location) is on the buying organization, meaning that the buying organization is responsible for buying it again or going against the carrier in a claim or legal action. Purchase Order FOB Point Listing: S FOB Destination Means Free on Board-Destination Point. Title passes to the buying organization once the product crosses from the carrier's truck to the buying organization's dock. The selling organization typically pays the carrier for the shipping cost. The risk of loss (that is, if the product is lost or stolen somewhere between the seller's location and the buyer's location) is on the selling organization, meaning that the selling organization is responsible for replacing it, which could include a claim or legal action against the carrier. Purchase Order FOB Point Listing: D |
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