FOB Definition and Shipping Terms

What does FOB stand for in shipping terms?

• Free On Board

• Freight On Board

• Free Of Board

• Freight Of Board

In FOB Origin, who assumes the risk of transportation?

• The Buyer

• The Seller

• The Carrier

• The Insurer

Fill in the blank: In FOB Destination, the ______ retains title and control of goods until they are delivered.

• Seller

• Buyer

• Carrier

• Distributor

What does the modifier 'Prepaid & Add' mean in FOB terms?

• The carrier collects charges from the Buyer.

• The Seller prepays charges and adds them to the invoice.

• The Buyer pays charges upfront.

• The charges are included in the contract price.

In FOB Destination, Freight Prepaid & Add, who pays the freight and adds the charges to the invoice?

• Seller

• Buyer

• Carrier

• Third-party logistics provider

What does 'Prepaid' mean in shipping terms?

• Prepaid refers to shipping costs that are paid in advance by the sender, rather than the recipient.

• Prepaid means the recipient pays for the shipping upon delivery.

• Prepaid indicates that the shipping costs are shared between sender and recipient.

• Prepaid means the shipping costs are covered by a third party.

What does 'Collect' mean in shipping terms?

• Collect refers to a shipping term where the recipient is responsible for paying the shipping charges upon delivery.

• Collect means the sender pays for the shipping charges before dispatch.

• Collect indicates that the shipping charges are waived off.

• Collect implies that the shipping charges are shared between sender and recipient.

What does 'Prepaid/Collect Beyond' mean in shipping terms?

• Prepaid/Collect Beyond refers to a shipping arrangement where the shipping charges are either prepaid by the sender or collected from the recipient upon delivery.

• It means the shipment is free of charge for both sender and recipient.

• It indicates that the shipping charges are paid by a third party.

• It refers to a shipping method where the delivery time is guaranteed.

What does 'Third Party' mean in shipping terms?

• Third Party in shipping terms refers to an entity that is not directly involved in a transaction but may be affected by it or provide services related to it.

• Third Party refers to the main buyer in a shipping transaction.

• Third Party is the term used for the shipping company itself.

• Third Party means the recipient of the goods in a shipping transaction.

What does 'Pre-pay and Add' mean in shipping terms?

• The seller pays the shipping cost and adds it to the invoice

• The buyer pays the shipping cost upfront

• The shipping cost is included in the product price

• The shipping cost is paid upon delivery