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Free on Truck (FOT) is an Incoterm that indicates the seller’s responsibility for delivering goods to a specified truck or transportation vehicle, with the buyer assuming all costs and risks once the goods are loaded.
Under FOT, the seller is responsible for delivering the goods to a truck or other transport at their own premises or another agreed location. However, the risk of damage or loss transfers to the buyer once the goods are loaded onto the truck. This term is commonly used in logistics and shipping for land-based transportation of goods.
With Free on Truck (FOT), you benefit by knowing exactly when the responsibility for the goods transfers from the seller to you. As a buyer, you only incur the costs and risks after the goods are loaded onto your truck.
This can help you better manage your logistics, reduce risk during transport, and keep your costs clear and predictable. By using FOT, you can ensure smooth transactions without dealing with hidden costs or unexpected delays.
Buske Logistics is a Top 40 3PL with over 35 warehouses across North America, specializing in warehousing, transportation, and value-added services. We provide tailored logistics solutions serving major Fortune 500 companies.
FOT is important because it clarifies the point at which responsibility shifts from seller to buyer, which helps avoid misunderstandings during the shipping process. This term is particularly useful for companies that deal with land transport, as it specifies the seller's obligations and the buyer's risks during the transfer of goods.
For example, if a retail company sells goods under FOT terms, they are responsible for getting the items onto a truck, but once the items are loaded, the buyer must assume responsibility for the remaining transport and associated risks. This helps streamline the process and allocate responsibilities efficiently.
