what does F.O.B. Point on an invoice stand for?


Ad

Advertisements

A

Allan Martin

Freight on Board. FOB shipping point means the buyer picks up the tab for
the freight and FOB destination means the seller picks up the tab. Shipping
point and destination are usually replaced with actual locations.
 
B

Ben M. Schorr - MVP

Some people say "Freight on Board" some say "Free on Board" -- whichever you
prefer the meaning is the same: shipper pays the freight costs to that
point.

In addition to the two common examples Allan listed there is a third,
less-common, option which is that you may see F.O.B. and then some specified
location other than the shipper or destination. That means the shipper will
pay to get the good to that point and the buyer is responsible for them from
there.


--
Aloha,

-Ben-
Ben M. Schorr, OneNote-MVP
Roland Schorr & Tower
http://www.rolandschorr.com
Microsoft OneNote FAQ: http://www.factplace.com/onenotefaq.htm

**I apologize but I am unable to respond to direct requests for assistance.
Please post questions and replies here in the newsgroup. Mahalo!
 
A

Angus

Thank you all for your replies

Angus.

Ben M. Schorr - MVP said:
Some people say "Freight on Board" some say "Free on Board" -- whichever you
prefer the meaning is the same: shipper pays the freight costs to that
point.

In addition to the two common examples Allan listed there is a third,
less-common, option which is that you may see F.O.B. and then some specified
location other than the shipper or destination. That means the shipper will
pay to get the good to that point and the buyer is responsible for them from
there.


--
Aloha,

-Ben-
Ben M. Schorr, OneNote-MVP
Roland Schorr & Tower
http://www.rolandschorr.com
Microsoft OneNote FAQ: http://www.factplace.com/onenotefaq.htm

**I apologize but I am unable to respond to direct requests for assistance.
Please post questions and replies here in the newsgroup. Mahalo!
 
K

koulaid

FOB means Free on Board and is the point where the title to the goods
changes hands. Usually, a freight charge is involved with a FOB point and
either the buyer or seller can be responsible for freight. This depends on
the terms and conditions of the sale.

Example:
Item is Shipping to Atlanta from Tampa

FOB Tampa Fl freight prepaid and add
Buyer owns goods when the seller delivers them to freight company, seller
pays freight and charges the customer by adding the charge to the invoice.
The buyer is responsible for damage caused in transit because the buyer owns
the goods from Tampa to Atlanta.

same item quoted FOB Atlanta means the buyer does not own the item until he
signs for it in Atlanta, the freight charges can be added to the invoice or
allowed to the customer. The freight charge is dependant upon the terms and
conditions of sale and is usually specified on the quotation.


dk
 
Ad

Advertisements

B

Barpos Technologies

What difference does it make whether the goods changes hand at one place or
the other? Does it have to do with insurance claims? As far as I know, when
one ships something via UPS or Postal Mail, the shipper is always responsible
for the delivery up to the destination point, and the shipper must claim the
insurance $ should there be a need for it. Right?

Ronald
 
Ad

Advertisements

K

koulaid

FOB Shipping point means the title to the goods transfers to the buyer when
the shipper gives it to the shipping company. The shipper is no longer
responsible for the goods, the buyer is 100% responsible.

Yes, it has to do with claims, but you have to prove they are at fault. I
just had a UPS shipment damaged in transit. UPS first claimed that it was
not packaged correctly and refused to pay any claim. They claimed zero
responsibility! I had to go back to the seller, they had issue proof of
packaging with photos before UPS acknowledged fault. Total time was three
months and two visits from UPS reps. The item was a pneumatic positioner,
packaged in the box with expanding foam. ( there is no better packing
method) Selling price was around $600.00 and I had to buy another one for
the customer and wait for UPS to reimburse me. I lost about $100.00 total on
the claim.

The seller did have to post the claim with the shipper ( UPS). Insurance
takes even longer so I do not use it.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads


Top