FOB TERMS

THE EFFECT OF SELLING TERMS ON DISTRIBUTION
 
  Title passes to buyer   Freight charges paid by buyer  
F.O.B. ORIGIN, FRIEGHT COLLECT Buyer - Pays freight charges
Buyer - Bears freight charges
Buyer - Owns goods in transit
  Title passes to buyer      
F.O.B. ORIGIN, FREIGHT PREPAID
Freight charges paid by seller
Seller - Pays freight charges
Seller - Bears freight charges
Buyer - Owns goods in transit
  Title passes to buyer      
F.O.B. ORIGIN, FREIGHT PREPAID AND CHARGED BACK
(or "ADDED")

Freight charges paid by seller... the collected from buyer by adding amount to invoice
Seller - Pays freight charges
Buyer - Bears freight charges
Buyer - Owns goods in transit
      Title passes to buyer  
F.O.B. DESTINATION, FREIGHT COLLECT
Freight charges paid by buyer
Buyer - Pays freight charges
Buyer - Bears freight charges
Seller - Owns goods in transit
  Freight charges paid by seller   Title passes to buyer  
F.O.B. DESTINATION, FREIGHT PREPAID Seller - Pays freight charges
Seller - Bears freight charges
Seller - Owns goods in transit
      Title passes to buyer  
F.O.B. DESTINATION, FREIGHT COLLECT AND ALLOWED
Freight charges paid by buyer then charged to seller by deducting amount from invoice
Buyer - Pays freight charges
Seller - Bears freight charges
Seller - Owns goods in transit


Note: By Law, claims can be filed by the seller, buyer, or owner, with carrier. To ensure proper filing with the carrier, and monitoring of the claims process, Straight Line Transportation Inc. customers may forward claims to our office.