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Under FOB destination, who is responsible for damaged equipment during shipping?

The receiver is responsible for shipping charges

The supplier is responsible for both shipping charges and damage claims

Under FOB (Free on Board) destination terms, the supplier maintains ownership of the goods while they are in transit. This means that the supplier is responsible for both the shipping charges and any damages that occur to the equipment during transport. The "destination" portion of FOB indicates that the risk is transferred to the receiver only once the goods have been delivered to their final destination. Therefore, until the equipment arrives safely at the receiver's location, it is the supplier who is liable for any damage that may occur. This holds true regardless of the carrier or freight company used for shipping, as their role is primarily to transport the goods rather than assume responsibility for their condition during transit.

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The receiver should file the damage claim

The freight company is responsible for all claims

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