The two main types of FOB shipping are FOB origin (also known as FOB shipping point) and FOB destination. Here's how they work: FOB destination Under the Incoterms, FOB destination means that the seller retains ownership of the goods and is responsible for the goods until they reach the...
Freight: your place or mine? FOB origin or destination: do these terms have any real meaning in the supply chain?(News)Klancer, Pat
Myself and a few co-workers are having a lively debate on how FOB Destination vs. FOB Origin is used. We are looking at 52.257-29 - Origin. I see this is purely a title risk issue. The government takes the risk on from the initial shipping point. 52.257-
The seller is always responsible for paying export customs clearance in the country of origin when agreeing to use FOB, as they have to get the goods cleared and “free” for the buyer. The buyers must pay for import customs clearance at the destination because even in FOB Destination, the...
FOB Origin vs. FOB Destination FOB Origin and FOB Destination are two terms that are often misunderstood and confused to mean the same thing. To understand their nature individually, you will be explained and explained in detail. Here are the importance of two important concepts in the logistics...
This could be the port of origin or the destination port. The stated location determines who is responsible for goods during transit. When the destination is the origin port, it’s known as the FOB shipping point. When the destination port is the location, it’s known as the FOB ...
To avoid disputes, you must ensure that the contract specifies the FOB point clearly. It must state whether it's FOB destination or Origin type of transaction and the location ports. Additionally, the FOB contract must have clear rules on responsibilities ranging from financial obligation, shipping...
Companies in the United States that are new to exporting and importing often get tripped up with the use of Incoterms for their international transactions after years of usingtraditional domestic terms of salethat usually include some variation of FOB, such as FOB Origin or FOB Destination. ...
Sellers usually state “FOB Origin” or “FOB Destination” on their quotations and invoices. The Incoterms 2020 rule FCA identifies who pays for the freight charges and clears the goods for export. FCA is used by the U.S.-based exporter to designate whether the goods will be available at...
The choice between FOB Origin and FOB destination depends on the specific needs of both parties. Since Dara Inc. has experience managing international shipping or wants to save on transport costs, FOB Origin, they decided to go forward this way. However, if the seller wants to minimize risk ...