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Shipping Term Definitions

Freight Terms

Customer Takes Title of Goods...

Customer Responsibilities

Vendor Responsibilities

F.O.B Destination

At point of delivery

  • Pays freight
• Bears freight
• Owns goods in    transit
• Files claims (loss,    damage, etc.)

F.O.B Destination, Freight Pre-paid & Added

At point of delivery

• Bears freight

• Pays freight
• Bears freight
• Owns goods in    transit
• Files claims (loss,    damage, etc.)

F.O.B Destination, Freight Collect

At point of delivery

• Pays freight
• Bears freight

• Owns goods in    transit
• Files claims (loss,    damage, etc.)

F.O.B Origin

At shipping point or factory

• Pays freight
• Bears freight
• Owns goods in    transit
• Files claims (loss,    damage, etc.)

 

F.O.B Origin, Freight Pre-paid & Added

At shipping point or factory

• Bears freight
• Owns goods in    transit
• Files claims (loss, damage, etc.)

• Pays freight
• Adds freight to    invoice

F.O.B Origin, Freight Pre-paid & Allowed

At shipping point or factory

• Owns goods in    transit
• Files claims (loss,    damage, etc.)

• Pays freight
• Bears freight