FOB is an acronym for “freight on board”. Responsibility for freight costs is determined by the suffix “Origin” or “Destination” after “FOB.” “FOB Origin” indicates that the individual or organization originating the purchase (receiving the goods) is responsible for freight costs/liability. “FOB Destination” indicates that the person or organization receiving the order (sending the goods) is responsible for freight costs/liability. Specific terms of the agreement can vary widely, in particular which party (buyer or seller) pays for which shipment and loading costs, and/or where responsibility for the goods is transferred. The last distinction is important for determining liability or risk of loss for goods lost or damaged in transit from the seller to the buyer.