Explanation Of the F.O.B. Origin Terms
Explanation Of the F.O.B. Origin Term
First of all, F.O.B. stands for Free On Board and it indicates that the price for goods including delivery is at the seller’s expense to a specified point - in EnvironMolds' case it is the EnvironMolds shipping dock. In the purchasing world, F.O.B. is also used with an identified physical location to determine a) the responsibility for the payment of the freight charges and b) the point at which title for the shipment passes from the seller to the buyer.
In other words, F.O.B. is a purchasing term that is used between suppliers and customers.
EnvironMolds ships, F.O.B. Origin, Freight Prepaid: The "origin" part means that the buyer assumes title of the goods the moment the freight carrier picks up (UPS, USPO, Trucker, etc.)and signs the bill of lading at the origin pick-up location. The buyer also assumes the risk of transportation, and therefore is responsible for filing claims in the case of loss or damage. The "freight prepaid" part means the buyer is responsible for the freight charges in advance of a shipment.
In summary, that means the customer pays for shipping. Once the shipment is made, the buyer takes possession of the goods and is therefore, responsible for filing any shipping claims.