What does the shipping term "F.O.B. Destination" imply regarding shipping costs and risk of loss?

The term "F.O.B. Destination," which stands for "Free On Board Destination," indicates that the seller retains responsibility for both the shipping costs and the risk of loss until the goods are delivered to the buyer's designated location. This means that if anything were to happen to the goods during transit, such as damage or loss, the seller would be liable until the goods arrive safely at the destination.

Once the goods are delivered to the destination, the responsibilities shift, and the buyer assumes the risk of any loss or damage. In this arrangement, the buyer does not incur shipping costs until the goods reach their location, ensuring that the seller bears this financial burden along with the associated risks of transit up to the point of delivery. This shipping term provides an added layer of security for the buyer since they are only responsible for the goods once they have been physically received.