Transportation terms define when title (ownership)
of the goods pass from the Thorvie International LLC to
CUSTOMER and which party will pay for the shipping costs.
The question of ownership is very important if the goods
are damaged while in transit. Terms between the Thorvie
International LLC and CUSTOMER are set in the final communication
between the two parties - typically the order invoice.
All Thorvie International orders are shipped "FOB
Destination Freight Prepaid and Added (or Charged Back)"
Example Transportation Terms:
FOB Destination (Who is responsible), Freight
Collect (Who pays transportation costs)
Complete transportation terms answer
two questions:
- who owns the goods when?
and
- who is going to pay for the costs of shipping
the goods?
1. Who owns the goods when?
The first question of who is owns the goods
and is responsible for them (who holds title) is answered
by the first word after the acronym FOB. In our example:
2. Who is going to pay for the costs of
shipping the goods?
The second question of who is responsible
for final payment of the transportation costs is answered
by the second part of the transportation terms. In our
example:
FOB Destination, Freight
Collect (Who pays for transportation costs?)
.
