What Does On Board Destination Mean Apr 2026

(often referred to as FOB Destination ) is a shipping term meaning that the seller remains legally responsible for goods until they physically reach the buyer's specified location .

: The buyer pays the freight charges directly to the carrier upon arrival. FOB Destination vs. FOB Shipping Point (Origin) What Does On Board Destination Mean

The "destination" usually refers to the buyer's receiving dock, office, or post office box. Until the shipment arrives and is accepted at this point, the seller retains ownership (title), pays for transportation, and bears all risk of loss or damage during transit. Key Features of FOB Destination (often referred to as FOB Destination ) is

: The legal title of the goods only passes from the seller to the buyer when the shipment arrives at the buyer's location. FOB Shipping Point (Origin) The "destination" usually refers

: The seller pays and bears all freight charges.

: Because the seller bears the risk and cost, they usually choose the carrier and shipping route. Common Variations

Shipping contracts often add specific payment terms to the FOB Destination designation: