FOB Terms and Responsibilities
 

FOB Term     

Payment
of
Freight
Charges

Who
Bears
Freight
Costs

Owns
Goods
in
Transit

Who
Files
Claim 
(if any)

Explanation

FOB Shipping Point, 
freight collect 

Buyer

Buyer

Buyer

Buyer

Title and control of goods passes to Buyer when carrier signs for goods at the vendor's location. Carrier bills Buyer directly.

FOB Shipping Point, 
freight prepaid

Seller

Seller

Buyer

Buyer

Title passes to Buyer at vendor's dock. Seller pays and absorbs all freight costs.

FOB Shipping Point, 
freight prepaid 
and added to invoice

Seller

Buyer

Buyer

Buyer

Title passes to Buyer at vendor's dock. Seller pays shipping costs and adds the cost to their invoice.

FOB Destination, 
freight collect 

Buyer

Buyer

Seller

Seller

Title passes to Buyer when goods are delivered. Carrier bills Buyer for the freight costs.

* FOB Destination, 
freight prepaid 

Seller

Seller

Seller

Seller

Title passes to Buyer when goods are delivered. Seller pays and absorbs all freight costs.

FOB Destination, 
freight prepaid 
and added to invoice 

Seller

Buyer

Seller

Seller

Title passes to Buyer when goods are delivered. Seller pays shipping costs and adds the cost to their invoice.