Shipping Definitions

Terms of Sale/Purchase identify the passage of title and are typically expressed as “FOB, stated point or place.” The most simple and usual expressions are FOB Origin or FOB Destination.

• FOB Origin means that title to the merchandise passes at time and place of pick-up.
• FOB Destination means that title to the merchandise passes at time and place of delivery.

Freight Terms identify the party responsible for the payment of freight and are usually expressed as:

• Prepaid means that the shipper owns the freight payment responsibility.
• Prepaid and Add means that the shipper advances the freight charges to the carrier and then bills the beneficial owner of the freight for an amount approximating or equal to the actual freight charges.