Certified in Logistics, Transportation and Distribution (CLTD) Practice Test 2026 – Your All-in-One Resource to Complete Exam Success!

FOB, or Free on Board, is a term used in logistics to describe the point at which ownership and responsibility for goods transfer from the seller to the buyer. When FOB is specified, it indicates that the seller's obligations are fulfilled once the goods are loaded onto the transport vessel. This means that the seller is responsible for delivering the goods to the designated port and ensuring they are put aboard the ship or transport vehicle. After this point, the buyer assumes responsibility for any costs or risks associated with the goods during the transit process.

The other options reflect various responsibilities but do not accurately capture the essence of the FOB term. For instance, while the timing and financial responsibility for shipping costs can vary based on the specific terms of sale, the essence of FOB is primarily focused on the physical transfer of goods to the transport vessel, which is what makes the answer regarding the seller putting goods on the main transport vessel the correct choice.