By transition of risk or hazard, we mean the physical place where the transportation risk passes from the seller to the buyer.
Brief description
Transition of risk describes the point before which transportation risk is borne by the seller, after which the risk passes to the buyer. For example, using the CIF [port of shipment] formula, the transportation risk passes over the side of the ship at the port of shipment. From that point, the buyer assumes the risk for transportation. The transfer of risk is determined automatically when the Incoterms formula is established.
