Freight Terms Customer Takes Title
of Goods
Customer
Responsibilities
Vendor
Responsibilities
FOB Point of Origin,
Freight Collect
At point of origin or
factory
Pays freight
Bears freight
Owns goods in transit
Must file claims for
loss, damage or
overcharges
FOB Point of Origin,
Freight Prepaid and
Allowed
At point of origin or
factory
Owns goods in transit
Files claim
Pays freight
Bears freight
FOB Point of Origin,
Freight Prepaid and
Added
At point of origin or
factory
Bears freight
Owns goods in transit
Pays freight
Adds freight to invoice
FOB Destination,
Freight Collect
At destination Pays freight
Bears freight
Owns goods in transit
Files claims
FOB Destination,
Freight Prepaid and
Added
At destination Bears freight Pays freight
Adds freight to invoice
Owns goods in transit
FOB Destination,
Freight Prepaid and
Allowed
At destination Pays freight
Bears freight
Owns goods in transit
Files claims
 
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