APICS Certified Supply Chain Professional (CSCP) — Question 468

Which of the following entities assumes ownership of goods once loaded on an ocean vessel using Incoterms® freight on board (FOB)?

Answer options

• A. The carrier
• B. The buyer
• C. The seller
• D. The insurer

Correct answer: B

Explanation

Under FOB terms, ownership of the goods transfers to the buyer once they are loaded onto the vessel. The carrier is responsible for transporting the goods, but does not own them. The seller retains ownership until the goods are loaded, and the insurer's role is to provide coverage, not ownership.