Goods were damaged during transit on a less-than-truckload (LTL) shipment. The goods were shipped free on board (FOB) destination. Who is responsible to file a freight claim?
In an FOB Destination shipment, the seller retains ownership and responsibility for the goods until they reach the destination. Since the seller still holds responsibility for the goods during transit, they are the party that should file a freight claim if the goods are damaged in transit.
The correct answer is:
B. The seller - question is talking about who should file freight claim
Cannot be answer Carrier, goods are shipped Free On Board (FOB) destination, the responsibility for the goods remains with the seller until the goods reach the buyer's destination goods were damaged during transit on a less-than-truckload (LTL) shipment and were shipped FOB destination, it is the seller's responsibility to file a freight claim. Therefore the seller needs to initiate the claim process due to their ownership and contractual responsibility.
The carrier is responsible for filing a freight claim when goods are damaged during transit on a less-than-truckload (LTL) shipment. In this scenario, the goods were shipped free on board (FOB) destination, which means that the seller retains ownership and responsibility for the goods until they are delivered to the buyer's location. Once the goods are delivered and in the possession of the buyer, the buyer assumes ownership and responsibility. However, the carrier is responsible for any damage that occurs during transit and must file a freight claim for reimbursement of the damaged goods.
It should actually be the buyer according to FOB details on module 2 pg. 277
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