Under which shipping term does the buyer assume responsibility for the cargo once it reaches a designated point?

The term that indicates the buyer assumes responsibility for the cargo once it reaches a designated point is "Free on Board" (FOB). Under FOB, the seller is responsible for the cargo until it is loaded onto the shipping vessel at the specified shipping point. From that moment onwards, the buyer takes on the risk and responsibility for the cargo, which includes any costs associated with loss or damage during transit. This term clearly delineates the point at which the liability shifts from the seller to the buyer, making it a critical concept in maritime shipping and insurance.

In contrast, terms like Cost, Insurance, and Freight (CIF) involve the seller covering the cost of transportation and insurance until the cargo reaches the port of destination, therefore diminishing the buyer's immediate responsibility. Delivered Duty Paid (DDP) places the maximum responsibility on the seller to deliver the goods to the buyer's location, including all customs duties and taxes. Ex Works (EXW) sets the minimum obligation for the seller, as the buyer is responsible for transporting the goods from the seller's location onwards. Understanding these terms is crucial for determining liability and managing risk in shipping transactions.