Final answer:
Title passes from seller to buyer upon arrival at the buyer's warehouse in a shipment arrangement known as FOB destination, where the seller assumes the risk during shipment.
Step-by-step explanation:
In the context of commercial trade and shipment arrangements, the title of goods passes from the seller to the buyer upon arrival at the buyer's warehouse under the terms of FOB destination. This term means 'Free on Board Destination', indicating that the seller retains ownership and responsibility for the goods during transit and until they are delivered and received by the buyer.
The other options, such as FOB shipping point, would mean that the buyer takes ownership and responsibility at the point when the goods leave the seller's premises. FOB shipping stop and FOB port are not standard incoterms. The title transfers at the destination, aligning with the intent of FOB destination agreements, ensuring the seller assumes the risk during transport.
FOB (Free On Board) shipping and FOB destination are both terms used in international trade to determine the point at which the ownership and responsibility of goods being transported shift from the seller to the buyer. The main difference between FOB shipping and FOB destination lies in the point at which this transfer occurs.
FOB shipping means that ownership and responsibility for the goods transfer from the seller to the buyer at the seller's shipping point or when the goods are loaded onto the carrier. This means that the buyer becomes responsible for any damage or loss that may occur during transportation. An example of FOB shipping would be if a buyer in New York purchases goods from a seller in China and the seller arranges for the goods to be loaded onto a ship in Shanghai. In this case, the ownership and responsibility for the goods transfer to the buyer once they are loaded onto the ship in Shanghai.