Under FOB destination, who is responsible for shipping charges if equipment is damaged en route?

Study for the CMRP Exam. Prepare with flashcards and multiple choice questions, each with hints and explanations. Get ready with us!

Under terms of FOB (Free on Board) destination, the supplier retains ownership of the goods until they reach the buyer's location. This means that the supplier is responsible for any shipping charges and the risk associated with the goods while they are in transit. If equipment is damaged during shipping, it is the supplier's responsibility to handle shipping logistics, including filing claims with the shipping carrier for any damages incurred.

In this arrangement, the receiver does not take ownership until the goods arrive at their destination. Therefore, the responsibility for claims related to damaged equipment during shipping falls to the supplier rather than the receiver or purchaser. This ensures that the buyer receives the goods in acceptable condition and mitigates their risk while the items are still under the supplier's ownership during transport.

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