"FOB Destination" stands for "Free on Board Destination." It is a shipping term used in logistics and trade that indicates the seller is responsible for the goods until they reach the buyer's location. This means the seller covers all costs and risks associated with transporting the goods until they are delivered. Once the goods arrive at the buyer's location, the responsibility shifts to the buyer. This arrangement protects the buyer from potential losses or damages during transit, as the seller is liable until the delivery is complete. Understanding FOB terms is essential for both buyers and sellers in international trade.