What does FOB destination mean?

No — FOB Destination (as used in US domestic trade) is NOT the same as the international Incoterm FOB.

International Incoterm FOB (Free on Board):

• Risk transfers to buyer when goods are loaded onto the vessel at the named origin port
• The buyer is responsible for ocean freight, insurance, and all costs from that point

US Domestic FOB Destination:

• Risk stays with the seller until goods are delivered to the buyer's specified destination
• The seller is responsible for freight costs and risk during the entire transit
• Essentially means the seller pays to deliver to your door

US Domestic FOB Origin (the opposite):

• Risk transfers to the buyer as soon as goods are picked up from the seller's location
• Buyer pays freight and bears transit risk

This terminology confusion causes real disputes. In international contracts, always use the current ICC Incoterms 2020 definitions and always specify the named place explicitly (e.g., 'FOB Port of Shanghai, Incoterms 2020') to eliminate ambiguity.