Two ports, different functions
Under CIF, risk transfers when the goods are on board at shipment, while the seller contracts for carriage and insurance to the named destination. Identify both ports in the operational documents so the destination is not confused with the delivery point.
Freight and insurance review
Confirm voyage scope, insurance evidence, insured interests, claims procedure and any additional cover required by agreement. Minimum contractual insurance may not address every commercial exposure. Review coverage with appropriate professional advisers.
Receiving-terminal readiness
The buyer should confirm import readiness, discharge acceptance, storage and onward movement. Agree berth restrictions, discharge rates, arrival notices and allocation of demurrage or delay costs. The existence of a destination port does not establish terminal acceptance.
Document and payment alignment
Agree the transport, quality, quantity, origin and insurance documents required under the sale contract and any payment instrument. Establish a discrepancy process. Title transfer and payment triggers need their own clauses.
Choosing the delivery structure
Compare the buyer’s vessel capability and receiving readiness against FOB arrangements. Use the general trade framework to connect contractual and physical milestones.
Sources & further reading
Technical references support the definitions above. Consult the applicable standard and qualified advisers for transaction-specific decisions.