What distinguishes Free on Board (FOB) destination from FOB shipping point?

The distinction between Free on Board (FOB) destination and FOB shipping point is primarily centered around the responsibility for the goods during transit. When the terms are FOB destination, it means that the seller retains ownership and responsibility for the goods until they reach the buyer's specified location. This means that if any issues arise, such as damage or loss during transit, the seller is still accountable until the goods are delivered to the buyer.

In contrast, FOB shipping point indicates that the ownership and responsibility transfer to the buyer as soon as the goods are shipped. Therefore, once the seller ships the items, they are no longer liable for any risks associated with the goods during transit.

The other options do not accurately capture the key differences between FOB destination and FOB shipping point. For example, ownership transfer upon acceptance does not specifically relate to the distinction between these two terms. Similarly, the risk being higher for the buyer is not inherent to FOB destination as ownership and risk transfer at the shipping point. Finally, coverage during transit relevant to either term does not distinguish them as it applies universally until ownership is transferred.