Purchasing & Strategic Contracting

Freight Terms

Freight terms determine when the risk of transit passes form the vendor to the University. This becomes important in circumstances such as damaged or lost goods in order to determine who pays for the loss - the vendor or the university department which ordered the goods. Freight terms apply only to goods that are to be delivered by the vendor to the University, not to services.

Based upon the items being shipped, you may wish to consult our Procurement Specialists who can work with you  to select a shipping method which would minimize your cost and risk.  NOTE: In the UMass BuyWays System, the default for freight terms is "FOB Destination," which prints on the Purchase Order. 

Definition of Terms

FOB Destination
Title to goods passes to the University when a University representative signs for the delivery – either at the University’s receiving dock or the department location, depending on where the vendors’ representative (carrier or shipping company) delivers the shipment. Damages to goods in transit are covered by the vendor.

FOB Shipping Point
Title to goods passes to the University at the point of shipment. This means that should anything happen to the goods in transit, it is up to the customer (the department) to deal with the carrier (shipping company) to resolve the issue.

Payment for Freight
  • Prepay/Add
    • The vendor will prepay the freight and add the charge to the invoice for the goods
  • Freight Allowed (No Freight)
    • The vendor will pay the freight