What does F.O.B. factory or shipping point mean?
F.O.B. means “Freight on Board” or “Free on Board”. What that means is ownership of the merchandise is transferred the moment the freight carrier signs the freight bill. The freight company is responsible for exactly what they signed for. Under the terms, they agree to deliver the specified quantity in tact and undamaged to the customer location. If they do not, the customer must file a freight claim to recover any loss or damage that occurs in transit.
