In FOB Destination, Freight Prepaid & Add arrangements, the seller pays for the shipping costs but then passes on the cost to the buyer.

It's also the place where title to the goods transfers from seller to buyer. Rather than a name, the contract may simply say FOB shipping point or FOB destination.

Free on board (FOB) shipping dictates the obligations of the parties and the costs each must assume. The two main types of FOB are FOB destination and FOB shipping point.