FOB Shipping Point

FOB Shipping Point (Free on Board) refers to a shipping arrangement where the buyer assumes ownership and responsibility for goods as soon as they leave the seller's location. This means that once the seller ships the items, the buyer is responsible for any risks, costs, or damages that may occur during transport. In this arrangement, the seller's obligation ends at the point of shipment, making it crucial for buyers to consider shipping insurance and logistics, as they are now responsible for the goods while they are in transit.