Certified Materials and Resource Professional Practice

Question: 1 / 400

What does FOB Destination imply regarding freight charges?

The buyer pays the freight charges

The supplier retains ownership until delivery

The buyer assumes responsibility for filing claims

The supplier pays and includes freight in the invoice

FOB Destination indicates that the supplier is responsible for the freight charges until the goods are delivered to the buyer's specified location. This means that the supplier not only pays the freight charges but also manages the risks associated with the transportation of the goods until they arrive at the destination. As such, the freight costs are typically included in the invoice to the buyer, reflecting the total cost of the goods once they have been delivered.

Under this arrangement, the ownership of the goods remains with the supplier until they reach the destination, which is a key aspect of FOB Destination. Therefore, the supplier carries all costs and responsibilities, including potential damages or losses during transit, until the goods are officially received by the buyer.

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