Who Bears Transportation Cost in FOB Shipping Destination Terms of Contract?
In the world of international trade, one of the most commonly used terms of contract is the FOB (Free on Board) shipping destination terms. This term determines who bears the transportation cost and risk of loss or damage to the goods until they reach the agreed destination. But who exactly is responsible for these costs? Let’s find out.
In FOB shipping destination terms, the seller is responsible for the transportation of the goods to the agreed destination. This means that the seller bears the transportation cost and assumes the risk of loss or damage to the goods during transit. Once the goods reach the destination, the ownership and responsibility are transferred to the buyer.
However, it is important to note that the specific terms of the contract can vary depending on the agreement between the parties involved. The International Chamber of Commerce (ICC) provides the Incoterms rules, which are widely used to define the rights and obligations of the buyer and seller in international trade contracts.
If you are interested in learning more about the FOB shipping destination terms and who bears the transportation cost, you can visit this article for detailed information.
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