Fob Shipping Point Flashcards, test questions and answers
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What is Fob Shipping Point?
In business, a fob shipping point is a term used to describe the transfer of ownership of goods during transit. It is an agreement made between two parties that states that once goods are delivered to the fob shipping point, the buyer assumes full responsibility for them. This type of transaction is often used when products are being shipped from one place to another and payment has already been received by the seller.The term fob stands for free on board, which means that, in this case, the buyer pays all costs associated with getting the goods from the selling party’s dock or warehouse up until it reaches their own chosen destination. This includes freight charges and any other related fees or taxes. Once these costs have been paid and product has arrived at its designated destination, then title of ownership transfers over to the buyer. Fob shipping point transactions generally provide some degree of protection to both buyers and sellers alike since they establish clear terms regarding who owns what during transit while also providing a more precise way of tracking shipments as they move through different hands throughout their journey. Additionally, it helps prevent confusion over whether certain costs should be shouldered by either party during transport as those details can be outlined in advance before any shipment takes place. Overall, fob shipping point transactions are an increasingly popular way for businesses to handle their international and domestic freight needs due their flexibility and assurance that products will arrive safely without too much risk involved for either side involved in the transaction. As such, it’s no surprise that many companies depend on this type of agreement when moving goods from one location to another in order ensure a successful delivery every time.