View Full Version : Who Choses Freight Buyer or Supplier

04-29-2013, 04:45 PM
I work for a large medical device manufacturer and we negotiate our freight rates with common carriers for national rates. I have asked one of our vendors to use our freight account, and he refuses saying that he is shipping the material FOB destination, and he wants to chose the way the material ships, but still bill me for the cost. I explained that we have negotiated rates, and want to use our own account, and still he can ship FOB destination.

He says that he has the legal right to chose how the material will ship. I have never heard of such a process. Can you please shed light on this topic for me? Thanks

11-06-2013, 07:39 PM
I have never heard of that either. I have always selected method of shipping and never had anyone tell me they have the legal right to choose how the material will ship. That person may have a personal relationship with a local freight carrier or preference. Seems odd...

12-23-2013, 03:06 PM
I do not see any basis for the supplier making that claim, unless there was some language in their quotation back to you which said the supplier will ship using their carrier and back-charge you that cost. If you accepted the quotation you may very well have also accepted some onerous terms

As Joan says - it seem odd

02-19-2014, 08:04 PM
FOB Destination is the legal concept of who owns the material while in transit. Not to be confused with collect or prepaid. Your supplier is confusing the definition. They are mutually exclusive.

03-17-2014, 12:47 PM

Delivery terms decides normally on the basis of the common agreement between buyer and seller. Supplier do not have any legal right to decide delivery terms. In this case you can approach the supplier and propose to offer option of FOB Origin. In case of disagreement you may put ask the supplier for the separate freight component to compare with your negotiated rate. Hope this approach will help.