Free on Board OR Freight on Board; goods placed in a mode of transport without any loading cost and free of any encumbrances. FOB is followed by the term Destination or Origin (Shipping Point). Title passes at origin, and buyer has total responsibility over the goods while in shipment. Customer takes ownership (title and control) of the goods at the origin (when the carrier signs for goods) and is responsible for transportation of the goods beyond this point. The customer files claims (if any). Destination — Title or ownership passes to the buyer when the carrier delivers the goods to the delivery point.