Your question:

Shipments could be damaged in transit. If the FOB point is the shipping point, then the loss is borne by the ________. Conversely, if the FOB point is the destination, then the loss is borne by the ______________. Sender, buyer Buyer, sender Vendor, supplier Company, Dealer

FOB Point and Loss Responsibility in Transit Answers and Explanation:

Who Bears the Loss in Damaged Transit? Understanding FOB Points

In international trade, shipments face the risk of damage during transportation. Determining who bears the financial responsibility for such losses hinges on the agreed-upon "FOB point". Let's delve into this concept step-by-step, with a 450-word explanation:

• FOB Destination: Here, the seller retains ownership and responsibility for the goods until they reach the destination agreed upon in the contract. This includes covering the cost of any damage or loss occurring during transit.

3. Applying the Principle:

• Negotiation power: Generally, the party with stronger bargaining power dictates the FOB point.

• Distribution network and expertise: If the seller has a strong distribution network and expertise in handling international shipping, they may prefer FOB Destination.

Conclusion:

Understanding FOB points is crucial in international trade to avoid unforeseen losses and ensure smooth transactions. By carefully considering the implications of each point and negotiating terms that align with your risk tolerance and business needs, you can navigate the complexities of international trade with confidence.