Who is responsible for the freight cost when the terms are FOB Destination A either the buyer or the seller be the seller C the buyer d the customer?

Q: Who is responsible for freight with FOB?

FOB Terms: FOB Origin, Freight Collect Freight Collect” refers to the legal fact that the buyer is responsible for all freight charges. The buyer also assumes all risks of transportation. That means they are responsible for filing claims in the case of loss or damage.

(1)Unless otherwise agreed the term F.O.B. (which means "free on board") at a named place, even though used only in connection with the stated price, is a delivery term under which

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FOB Costs and Payments
FOB Destination
Record Keeping
Who pays freight cost when the terms are FOB destination?
Who is responsible for freight with FOB?
Who is responsible for the freight cost when?

(a) when the term is F.O.B. the place of shipment, the seller must at that place ship the goods in the manner provided in this Article (Section 2-504) and bear the expense and risk of putting them into the possession of the carrier; or
(b) when the term is F.O.B. the place of destination, the seller must at his own expense and risk transport the goods to that place and there tender delivery of them in the manner provided in this Article (Section 2-503);
(c) when under either (a) or (b) the term is also F.O.B. vessel, car or other vehicle, the seller must in addition at his own expense and risk load the goods on board. If the term is F.O.B. vessel the buyer must name the vessel and in an appropriate case the seller must comply with the provisions of this Article on the form of bill of lading (Section 2-323).

(2) Unless otherwise agreed the term F.A.S. vessel (which means "free alongside") at a named port, even though used only in connection with the stated price, is a delivery term under which the sellermust

(a) at his own expense and risk deliver the goods alongside the vessel in the manner usual in that port or on a dock designated and provided by the buyer; and
(b) obtain and tender a receipt for the goods in exchange for which the carrier is under a duty to issue a bill of lading.

(3) Unless otherwise agreed in any case falling within subsection (1)(a) or (c) or subsection (2) the buyer must seasonably give any needed instructions for making delivery, including when the term is F.A.S. or F.O.B. the loading berth of the vessel and in an appropriate case its name and sailing date. The seller may treat the failure of needed instructions as a failure of cooperation under this Article (Section 2-311). He may also at his option move the goodsin any reasonable manner preparatory to delivery or shipment.

(4) Under the term F.O.B. vessel or F.A.S. unless otherwise agreed the buyer must make payment against tender of the required documents and the seller may not tender nor the buyer demand delivery of the goodsin substitution for the documents.

FOB stands for "freight on board." The term is used to describe the point in a transaction where a product being shipped becomes the property of the buyer. In an FOB Origin shipping arrangement, the buyer is the owner of the product as soon as it leaves the point of origin. In an FOB Destination shipping arrangement, the shipment becomes the property of the buyer when it reaches a specified destination in the shipping process.

Unless specified otherwise, the seller pays shipping costs in an FOB Destination arrangement.

FOB Costs and Payments

Whether the buyer or seller is responsible for shipping charges depends on the specific FOB Destination arrangement. In shipping arrangements classified as FOB Destination, Freight Collect, the buyer is responsible for shipping costs. In FOB Destination, Freight Prepaid & Add arrangements, the seller pays for the shipping costs but then passes on the cost to the buyer.

FOB Destination

The destination term makes the arrangement specific to the ownership of the property in transit. The distinction is important because the selling party retains ownership throughout the shipping process. On arrival at the destination, the buyer assumes control of the property.

An FOB Destination designation is common on high-value goods where the seller maintains liability for the goods until they are safely received and inspected. So who is paying for the shipping in this whole process?

The seller typically covers the shipping arrangements and costs in FOB Destination arrangements. If other terms are negotiated, however, the buyer may be liable for the expenses. The shipping company requires payment before shipping the goods, so the process of arranging and paying for shipping is all done in advance.

Shipping is often factored into the cost by the seller, making the process of paying and booking freight simple for everyone. The seller can factor that cost into its product, so the buyer is paying the shipping without a specific line item for the price.

If the seller does not factor shipping into the overall costs, it bills shipping as a line item on the total bill for the goods, which makes it clear that shipping is charged separately from the price of goods. Some sellers position shipping this way so that the cost of goods appears lower than the competitions' prices. After you make a purchase, however, the shipping cost brings the total back in line with other quotes where the shipping is built into the price.

Record Keeping

A major reason for shipping FOB Destination is to simplify record keeping. When goods are in transit, who has ownership? In the case of FOB Destination shipments, the goods remain in the seller's inventory while in transit.

After reaching the destination, the buyer assumes ownership and adds the goods to its inventory. The process ensures the goods are accounted for while in transit; otherwise, they enter a gray area of ownership. It also serves the accounting department, which must record the sale and transfer of inventory.

When the inventory is received and accepted at the destination, the delivery confirmation serves as proof of the goods leaving the seller inventory. The delivery confirmation serves a similar purpose for the buyer's accounting department. After the goods are accepted, they are logged in to inventory and accounted for as assets in the business.

Every FOB Destination received delivery confirmation should immediately go to accounting to keep track all inventory and financials relative to physical goods. While this is a common practice in business, private transactions can also use FOB Destination terms. In a private scenario, the new owner simply assumes title to the goods.

Who pays freight cost when the terms are FOB destination?

When it comes to the FOB shipping point option, the seller assumes the transport costs and fees until the goods reach the port of origin. Once the goods are on the ship, the buyer is financially responsible for all costs associated with transport as well as customs, taxes, and other fees.

Who is responsible for freight with FOB?

FOB Terms: FOB Origin, Freight Collect “Freight Collect” refers to the legal fact that the buyer is responsible for all freight charges. The buyer also assumes all risks of transportation. That means they are responsible for filing claims in the case of loss or damage.