FOB Shipping Point/FOB Origin

The University takes delivery of goods being shipped to it by a supplier once the goods leave the supplier’s shipping dock. This puts the risk on the University, as any loss or damage during shipping is the University’s burden.

There are other similar shipping terms which could also mean the University takes delivery of goods once the goods leave the supplier’s shipping dock. A couple of Examples:

• Cost, Insurance & Freight (CIF)
  • If for example the quote states CIF – New York, NY or CIF – Singapore, the University is responsible for any loss or damage between the CIF location and the arrival of goods to the University.
• ExWorks (EXW)

In the best interest of the University, UIUC Purchasing suggests the department choose one of the following options, when FOB Shipping Point/FOB Origin, CIF with a named location, or ExWorks is indicated on the quote:

1. Ask the Vendor to update the quote with FOB Delivered/FOB Destination.
2. Provide the department’s shipping account number to pay for shipping, which provides insurance protection. When the department provides its shipping account number, the quote should include the shipping vendor and account number. The shipping line should be removed.

When the department’s shipping account number is provided on the quote and noted on the PO, shipping instructions are included as part of the Purchase Order.