Last updated: May 4, 2018

FOB Freight

Continental U.S. Terms of Sale

FOB (free on board) points are specified in IPA Supply purchase orders. The Continental U.S. FOB point is either origin or destination. The FOB point specifies where the supplier is obligated to have the material packaged and ready for shipment (FOB origin) or where the supplier obligation for safe and timely transit ends (FOB Destination).

There are many variances to the FOB terms as shown within this guide. Those terms most frequently used by IPA Supply are described below.

FOB Origin with Freight Charges Collect:

  • Title passes to IPA Supply when the freight is loaded on the carrier stipulated on the appropriate IPA Supply routing guide.
  • Risk of loss and the filing of claims for loss and damage are the responsibility of IPA Supply as long as the supplier follows the routing guide instructions.
  • Freight charges are automatically sent to IPA Supply.

FOB Origin with Freight Charges Prepaid and Billed:

  • The freight charges are paid by the supplier and the charges are added to the suppliers invoice for the material. Appropriate copies of the carrier’s freight charges are required as back up to the invoice. All other aspects of FOB origin remain the same.

FOB Destination with Freight Charges Prepaid:

  • Title passes to IPA Supply upon safe delivery of the material by the supplier’s carrier.
  • Risk of loss and filing of claims for loss and damage are the responsibility of the supplier.
  • Freight charges are paid by the supplier.

Effects of Terms of Sale On Distribution:

  1. FOB Origin, Freight Collect
    • Buyer pays and bears freight charges
    • Buyer owns goods in transit
    • Buyer files claims (if any)
  2. FOB Origin, Freight Prepaid
    • Seller pays and bears freight charges
    • Buyer owns goods in transit
    • Buyer files claims (if any)
  3. FOB Origin, Freight Prepaid and Charge Back
    • Seller pays freight charges
    • Buyer bears freight charges
    • Buyer owns goods in transit
    • Buyer files claims (if any)
  4. FOB Destination, Freight Collect
    • Buyer pays and bears freight charges
    • Seller owns goods in transit
    • Seller files claims (if any)
  5. FOB Destination, Freight Prepaid
    • Seller pays and bears freight charges
    • Seller owns goods in transit
    • Seller files claims (if any)
  6. FOB Destination, Freight Collect and Allowed
    • Buyer pays freight charges
    • Seller bears freight charges
    • Seller owns goods in transit
    • Seller files claims (if any)

Please direct all questions and inquiries to customerservice@ipasupply.com.

International Purchasing Associates d/b/a IPA Supply operates www.ipasupply.com. This page informs you of our policies regarding shipping users of www.ipasupply.com. The shipping time and cost calculated on our website is the most accurate estimate we can provide; however, actual shipping costs may differ.