FOB-destination

FOB destination

FOB destination, or Free On Board destination, is a shipping term that indicates the seller is responsible for the goods until they reach the buyer’s specified destination. This means that the seller is responsible for all costs and risks associated with transporting the goods to the buyer’s location.

For example, if a company in Denmark purchases goods from a seller in China on FOB destination terms, the seller is responsible for arranging and paying for transportation of the goods to Denmark. The seller is also responsible for any risks associated with the goods during transit, such as damage or loss.

Once the goods arrive at the buyer’s specified destination in Denmark, ownership and risk transfer to the buyer. The buyer is then responsible for any further transportation costs or risks associated with the goods.

It is important for both sellers and buyers to clearly understand the terms of FOB destination to avoid any misunderstandings or disputes during the shipping process.

For more information on FOB destination, you can visit Wikipedia.