FOB destination
FOB destination is a shipping term used in international trade to indicate that the seller is responsible for the goods until they reach the buyer’s specified destination. This means that the seller bears the cost and risk of transporting the goods to the agreed-upon location, and the buyer takes ownership and responsibility for the goods once they arrive at the destination.
For example, if a company in Romania purchases goods from a supplier in China on FOB destination terms, the supplier is responsible for arranging and paying for the transportation of the goods to Romania. Once the goods arrive in Romania, the buyer takes possession of them and is responsible for any further transportation or handling of the goods.
It is important for both buyers and sellers to clearly understand the terms of FOB destination to avoid any misunderstandings or disputes regarding the shipment of goods.
- Advantages of FOB destination: The buyer has greater control over the shipment and can choose the most cost-effective method of transportation.
- Disadvantages of FOB destination: The seller may have less control over the shipment and may incur higher costs if there are delays or issues during transportation.
Overall, FOB destination is a common shipping term used in international trade to define the responsibilities of the seller and buyer in terms of transportation and delivery of goods.