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FOB Shipping Point vs. FOB Destination: What's the Difference?

Aug 28, 2022 at 06:34 AM CST

FOB shipping point and FOB destination indicate the point at which the title of goods transfers from the seller to the buyer. The distinction is important in specifying who is liable for goods lost or damaged during shipping. The primary difference between the two contracts is in the timing of the transfer of the title for the goods.