Understanding Liability in International Shipping: FOB, CIF, DDP Explained
Understanding Liability in International Shipping: FOB, CIF, DDP Explained
15 Jun 2025
In international shipping, cargo loss or damage during transit is more common than many realize. When such issues arise, one critical question often surfaces: Who is responsible for the loss?
This article provides a clear and practical explanation of:
• Who bears the risk when cargo goes missing during transport
• The crucial role of cargo insurance — when it helps and when it doesn’t
• How different Incoterms (FOB, CIF, DDP) affect risk transfer and liability
• What happens if no insurance was purchased — and what options remain
• How to protect your shipments and minimize risk with the right decisions
Whether you’re an exporter, importer, cross-border e-commerce seller, or logistics manager, understanding these concepts is essential for secure and reliable international trade.
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