Originally Posted by WhiteTiger Free on board as defined gets pretty senseless when you see goods priced and listed as FOB point of shipping origin.
Tiger |
What it means if shipped FOB Point of origin is the shipper is free of the title and the ownership is passed to the Buyer.
Do a check with the freight companies and most use Free on Board.
A couple of examples, If I sell a machine on ebay and specify FOB My Shop Floor, and a Guy in Texas wins the bid, once I have the money it is his, it is up to him how he gets it out.
I am FREE of the title of ownership, if there is a fire or flood or it falls off the truck it is his loss.
2/ If I sell new lathes and at IMTS I advirtise show special, FOB your dock anywhere in N.America, then I have owner ship of the title until you sign for it, if it falls off the truck going into your plant, I have to replace it and I pay the freight.
Al.