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Understanding FOB (Freight on Board) Terms
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FOB terms always identifies where the title passes from the seller to the buyer.
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It also included who is responsible for freight.
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Shipping Term - FOB (Freight on Board) Who is responsible for freight or shipping costs. Title (Ownership) PassesWho files damage or loss claims
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FOB Destination (U of M Preferred Term)If there are no other qualifiers, Seller is responsible for freight costsSeller owns until shipment is delivered/accepted at U of M location. U of M takes title upon delivery.Vendor files for any damage that occurs before U of M accepts delivery. After delivery, U of M files damage claim.
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FOB - Destination - Freight Prepaid and Allowed Seller paids freight costs. Freight is included in the product price. Seller owns until shipment is delivered/accepted at U of M location. U of M takes title upon delivery.Vendor files for any damage that occurs before U of M accepts delivery. After delivery, U of M files damage claim.
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FOB Destination - Freight Prepaid and added Seller prepays freight costs and adds to submitted invoice.Seller owns until shipment is delivered/accepted at U of M location. U of M takes title upon delivery.Vendor files for any damage that occurs before U of M accepts delivery. After delivery, U of M files damage claim.
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NOTE: Before placing order clarify with seller whether the freight / shipping costs will be a separate invoice line or are included in the quoted product price.
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NOTE: University does not accept FOB Terms of Collect.
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FOB Origin If there are no other qualifiers, Buyer is responsible for freight costsBuyer owns goods from shipping point and in route to U of M location. Buyer files for any damage that occurs once shipping starts.
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FOB Origin, Freight PrePaid Buyer paids freight costs. Freight is included in the product price.
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FOB Origin, Freight Prepaid and AllowedSeller prepays freight costs and adds to submitted invoice.
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