C Terms Split Cost From Risk
Explain why CPT/CIP/CFR/CIF can make the seller pay freight after risk has already transferred.
Omar sees "CIP Riyadh" and assumes the seller owns the cargo risk until Riyadh because the seller paid the freight. The shipment is damaged after airline handoff, and the claim meeting gets uncomfortable. The ICC Incoterms rules work because they standardize a narrow but critical part of a goods sale: which party performs delivery-related tasks, bears delivery-related costs, and carries risk of loss or damage at a named point. That narrowness is the mechanism. It prevents teams in different countries from arguing from local habits, but it also means the term must be chosen with discipline. The rule does not…
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