Which Professional Purchasing Organization Should Commercial negotiation training Join? Freight, transportation, ownership, and risk of loss are not very well understood concepts in the purchasing community. Indeed, many buyers confuse receipt with delivery.
Let’s examine the most commonly used freight terms for delivery of good within the bounds of US trade and associated risk of loss. First, understand that, delivery according to the UCC, is an intangible concept. Delivery occurs when and where the seller voluntarily transfers effective ownership of goods to the buyer. Once delivered, the rights of ownership and risk of loss rests with the buyer. This is different from receipt which occurs when buyer takes physical possession of the goods. It is in the buyer’s interest to carefully negotiate freight terms as the UCC favors the seller when terms are not specified.
There are many variations in use. To clarify, this Table shows the meaning and impact of the most popular freight terms. Are Cars Going the Way of Buggies? International Sign Association Converge St.