BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -When we consider the FOB shipping point, the ownership of the shipment gets transferred from the buyer to the seller at the loading point of the goods. However, the ownership title in the FOB destination gets transferred from the seller to the buyer when the buyer receives the shipment at the unloading dock.

Detailed explanation-2: -In FOB shipping point, the seller pays for the shipping costs to bring the goods to the shipping point. The buyer is then responsible for paying the shipping costs to take possession of the goods.

Detailed explanation-3: -The term FOB shipping point is a contraction of the term “Free on Board Shipping Point.” It means that the buyer takes delivery of goods being shipped to it by a supplier once the goods leave the supplier’s shipping dock.

Detailed explanation-4: -In FOB shipping point agreements, the seller pays all transportation costs and fees to get the goods to the port of origin. Once the goods are at the point of origin and on the transportation vessel, the buyer is financially responsible for costs to transport the goods such as customs, taxes, and fees.

Detailed explanation-5: -FOB shipping point terms indicate that the buyer assumes ownership of the goods as soon as they leave the supplier’s location. They also indicate that the buyer must pay to have the goods shipped.