FOB shipping point means that the title to the goods passes to the purchaser upon receipt of the goods and the seller is responsible for the cost of the freight.
Question
FOB Shipping Point
Definition: FOB (Free on Board) shipping point means that the title to the goods passes to the purchaser upon receipt of the goods, and the seller is responsible for the cost of the freight.
Solution
The statement provided about "FOB shipping point" is incorrect. Here's the correct explanation:
FOB Shipping Point: This term means that the title to the goods passes to the purchaser as soon as the goods leave the seller's shipping dock. The buyer is responsible for the freight costs and bears the risk of loss once the goods are shipped.
In contrast, FOB Destination means the title passes to the buyer only when the goods arrive at the buyer's location, and the seller is responsible for the freight costs and risk of loss until delivery.
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FOB shipping point means that the title to the goods passes to the purchaser upon receipt of the goods and the seller is responsible for the cost of the freight.
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When a firm decides to combine multiple modes of transportation to complete a single long-distance movement of freight, shipping is being used.
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