Who is responsible for shipping charges and filing damage claims when equipment is damaged en route under F O B shipping point?

In a situation where shipping is designated as F.O.B. (Free On Board) shipping point, the responsibility for shipping charges and handling damage claims lies primarily with the receiver after the shipment leaves the supplier's location. Under F.O.B. shipping point, ownership and risk transfer from the supplier to the receiver at the point of shipment. This means that once the equipment is loaded for shipment, the receiver becomes responsible for any shipping costs incurred as well as any issues that arise during transit, including damage claims.

In this context, when equipment is damaged en route, it is the receiver’s responsibility to file any damage claims with the carrier. The supplier does not typically reimburse shipping charges under these terms, as they are considered the responsibility of the receiver. This understanding is crucial for proper logistics management and financial planning in procurement and supply chain operations.