Who pays shipping on FOB origin?

Who pays shipping on FOB origin?

POINT OF ORIGIN FOB Origin Unless qualified in the FOB clause, the buyer is responsible for freight charges. FOB Origin Freight Collect Buyer pays and bears freight charges. FOB Origin, Freight Prepaid Seller pays and bears freight charges.

What is the difference between FOB shipping and FOB destination?

Free on board shipping point indicates that the buyer takes responsibility for loss or damage the moment the goods get to the shipper. Free on board destination indicates that the seller retains liability for loss or damage until the goods are delivered to the buyer.

What is an FOB origin?

“FOB Origin” refers to the legal fact that the buyer assumes title of the goods the moment the freight carrier picks up and signs the bill of lading (BOL) at the origin pick-up location. “Freight Collect” refers to the legal fact that the buyer is responsible for all freight charges.

What is the difference between FOB factory and FOB destination store?

If you see FOB Factory – then there will be a freight charge added to your order to move the product from our factory to your location. FOB Destination indicates we will be responsible for any charges to get the shipment to your door.

Does FOB destination mean free shipping?

In shipping arrangements classified as FOB Destination, Freight Collect, the buyer is responsible for shipping costs. In FOB Destination, Freight Prepaid & Add arrangements, the seller pays for the shipping costs but then passes on the cost to the buyer.

Does FOB Mean delivered price?

All shipping charges have been included. Now, if a price is quoted FOB Your Facility, City State Zip this actually means exactly the same thing — that it is priced sitting at your warehouse, and all shipping fees have been paid by the supplier. Different way of saying it, but the same situation!