FOB is an acronym for "free on board". Responsibility for freight costs is determined by the suffix "Origin" or "Destination" after "FOB". FOB is commonly used when shipping goods to indicate who pays loading and transportation costs, and/or the point at which the responsibility of the goods transfers from shipper to buyer. |
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"FOB Our Plant" indicates the buyer pays shipping cost and takes responsibility for the goods when the goods leave our plant at 120 Midwest Road. |
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