Dictionary of Procurement Terms

The point at which a title changes hands from the supplier to the buyer at the destination of the shipment when the buyer signs for the goods. The supplier owns the goods in transit, assumes responsibility for carrier selection, and files any claims for damages incurred during this period. F.O.B. destination does not address the responsibility for the cost of transportation (freight charges), which must be specified with the inclusion of additional language.

The point at which a title passes at destination and the buyer pays the freight.

The point at which a title passes at destination and the buyer pays the freight and deducts it from the seller’s invoice.

The point at which a title to the goods passes from the supplier to the buyer at the point of destination and supplier pays the freight expense and then adds the freight expense to the buyer's invoice. Supplier owns goods in transit and files claims, if any.

The point at which a title passes at destination, and the seller pays the freight.