Free on Truck (FOT)
Free on Truck (FOT)
What does this term stand for?
Free on Truck (FOT) refers to a delivery arrangement in which the seller delivers goods onto the buyer’s truck at the seller’s premises or another agreed location. The seller is responsible for preparing and loading the cargo, while the buyer assumes responsibility once the goods are on the truck. FOT is commonly used in road transport logistics for local or regional deliveries, particularly for bulk or heavy items. This term provides clarity on responsibility, ensuring that loading is handled safely by the seller and transportation risk is transferred to the buyer once the goods are secured on the truck. Proper route planning, cargo securing, and communication between seller and buyer are essential for efficient FOT operations.
Key Characteristics:
- Seller Loading
- Buyer Transport
- Risk Transfer
- Cargo Secured
- Cost Separated
- Route Planned
- Delivery Defined
- Operational Clear
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