APICS Certified Supply Chain Professional (CSCP) — Question 75

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?

Answer options

• A. The carrier
• B. The seller
• C. The buyer
• D. The distribution warehouse

Correct answer: A

Explanation

The carrier is responsible for the goods once they are in transit, especially under FOB destination terms, which indicate that the seller retains ownership until delivery. Therefore, the carrier must file the freight claim for damage incurred during transit. The seller and buyer have limited responsibilities in this case, while the distribution warehouse is not involved in the claim process.