FOB (Freight on Board) Shipping Point is a shipping term that means the title to goods transfers from the seller to the buyer once the goods leave the seller’s business and are placed on a delivery vehicle.
Because the title to goods transfers to the buyer during shipping, the buyer is generally responsible for freight charges. In addition, if any goods are damaged or lost during the shipping process, the buyer is responsible for the losses and cannot hold the seller liable.
The buyer may, however, have a claim against the third-party shipping company. In contrast, FOB Destination means the title to goods stays with the seller until final delivery to the buyer.