Ontario Container Transport Shipping and Freight - A to Z | Page 4

What You Need to Know About
Your Freight Shipping Options
• Free on Board Origin
• Free on board or FOB origin refers to the time during the shipping exchange
when the seller gives the merchandise rights to the buyer, which means the
buyer assumes ownership. In an FOB instance, the freight is the responsibility
of the consignees who will be at the shipping dock, and this consignee has to
pay all of the costs associated with shipping.
• FOB Origin
• In this instance, the freight is the responsibility of the consignee at the
shipping dock; the shipper has to pay all the freight charges for the shipment.
You can also select FOB origin with a freight prepaid and charged back, which
means that the consignee is responsible for the freight once the product gets
to the shipper’s do k. The shipper ill also pa for all harges asso iated ith
the freight, and the shipper then invoices the consignee for these charges.
• FOB Destination Options
• For FOB desti atio shippi g, the goods title is passed at the o sig ee’s
dock. The shipper is responsible for the charges associated with the freight.
The freight is only shipped once all fees are paid. Freight collect is another
FOB destination option, and this means that the title for the goods passes the
doc of the consignee and consignee pays for all associated freight charges.
Or, you can select FOB destination with the freight collect and allowed
option. The title gets to the consignee dock and the consignee has to pay the
freight charges that the carrier has incurred. The fright charges are then
deducted from the invoice that the seller receives for the products.