what is fob shipping point

FOB stands for "Free on Board" and refers to a widely recognized shipping rule created by the International Chamber of Commerce (ICC) . FOB shipping point and FOB destination are two primary options for shipping goods to a customer, and they indicate the point at which the title of goods transfers from the seller to the buyer. In FOB shipping point, the sellers role in the transaction is complete when the purchased items are given to a shipping carrier and the shipment begins. At that point, the buyer holds the title to the goods they bought, and the buyer is responsible for products as soon as they leave the shipment origin. In contrast, in FOB destination, the seller remains responsible for products until the shipment is complete. The distinction between FOB shipping point and FOB destination is important in specifying who is liable for goods lost or damaged during shipping.