Certified Materials and Resource Professional Practice

When equipment is shipped under the terms of F.O.B. (Free On Board) shipping point, it indicates that the ownership of the goods transfers to the buyer (receiver) as soon as the goods are dispatched from the supplier's shipping point. This means that the receiver is responsible for the shipping charges from that moment forward. However, the arrangement of "freight allowed" generally implies that the vendor will cover the freight costs.

In this scenario, even though the supplier covers the shipping charges under a "freight allowed" arrangement, the onus of filing a damage claim falls on the receiver. This is because, under F.O.B. shipping point conditions, once the goods are shipped, the risk of loss or damage transfers to the receiver, who must then handle claims against the carrier for any damages incurred during transit.

Thus, the responsibility structure in this context leads to the conclusion that while the supplier may cover shipping costs, the responsibility for filing a claim regarding any damage during transport lies with the receiver.