What does the term 'FOB Destination' mean?
Understand the Problem
The question is asking for the definition of the term 'FOB Destination' in a shipping or logistics context. It provides multiple-choice answers related to the responsibilities of buyers and sellers during the shipping process. To solve this, we need to identify which option accurately describes the concept of 'FOB Destination.'
Answer
'FOB Destination' indicates the seller retains liability until delivery, and pays for shipping.
'FOB Destination' means that the seller retains liability for the goods until they are delivered to the buyer's specified location, and the seller is responsible for shipping costs.
Answer for screen readers
'FOB Destination' means that the seller retains liability for the goods until they are delivered to the buyer's specified location, and the seller is responsible for shipping costs.
More Information
The term establishes when the title of goods is transferred during shipping, which impacts who bears the risk of loss or damage at different stages of delivery.
Tips
A frequent mistake is confusing FOB Destination with FOB Shipping Point, where the buyer assumes responsibility once goods are shipped.
Sources
- What is FOB Destination? - Freight Right - freightright.com
- FOB Destination: Definition, Responsibility, Benefits, Cost + MORE - elogii.com
- What is FOB destination? | SumUp Invoices - sumup.com
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