Cargo Services Jargon Busting - What is FOB?

Cargo Services Jargon Busting - What is FOB?
When using cargo services to ship freight anywhere, you might have observed that freight forwarders and other cargo services tend to incorporate plenty of freight jargon that may appear unfamiliar. Irrespective of the value and size of your cargo is, it is essential that you understand what this jargon means since they're usually fundamental to the transportation procedure or accountability of your consignment.
 

So what exactly does FOB mean?

Quite possibly the most prevalent cargo services expression you are going to observe is FOB, so what does FOB its mean? FOB is an acronym for Free On Board and signifies the actual point from which responsibility for the consignment passes from the sender to the recipient. This truly is particularly critical in intercontinental transportation where lots of individuals are accountable in the transportation of a consignment contrasted with domestic transport.
 

FOB in Cargo Services Records

FOB is often recorded in a number of alternative ways on distribution paperwork and they all have a distinctive meaning.
 
  • FOB Origin: The recipient, must pay the transport costs, is the owner of products in the consignment and is accountable for filing any claims
  • FOB Origin, Freight Collect: The recipient, must pay the transport costs, is the owner of products in the consignment and is accountable for filing any claims
  • FOB Origin, Freight Prepaid: The sender, must pay the transport costs, is the owner of products in the consignment and is accountable for filing any claims
  • FOB Origin, Freight Prepaid & Add: The sender, must pay the transport costs, however they incorporate the fees on the invoice for the recipient to pay later. The recipient is the owner of products in the consignment and is accountable for filing any claims
  • FOB Destination: The sender, must pay the transport costs, is the owner of products in the consignment and is accountable for filing any claims
  • FOB Destination, Freight Collect: The recipient, must pay the transport costs, is the owner of products in the consignment and is accountable for filing any claims
  • FOB Destination, Freight Collect & Allow: The recipient, must pay the transport costs. The sender is the owner of products in the consignment and is accountable for filing any claims
  • FOB Destination, Freight Prepaid: The sender, must pay the transport costs, is the owner of products in the consignment and is accountable for filing any claims
 
Check back later for more cargo services jargon busting
 

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