CIPS Exam A9 Topic 1 Question 54 Discussion

Actual exam question for CIPS's A9 exam

Question #: 54
Topic #: 1

[All A9 Questions]

With the INCOTERM FOB (named shipment port), when does the risk pass?

AWhen the goods are unloaded at the destination port

BWhen the goods are delivered to the named destination port

CWhen the goods have passed over the ship's rail at the port of shipment

DWhen the goods have been handed over to the first carrier or forwarder.

Show Suggested Answer

Suggested Answer: A

by Jani at Mar 15, 2024, 07:17 AM

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Glen

4 months ago

That sounds plausible too, as the goods are technically in the hands of the carrier at that point.

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Starr

4 months ago

I think the risk passes when the goods have been handed over to the first carrier or forwarder.

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Steffanie

4 months ago

But that would mean choosing option A, which is not correct according to the INCOTERM FOB.

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Glen

4 months ago

I'm not so sure about that, I think the risk passes when the goods are unloaded at the destination port.

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Rodney

4 months ago

I agree with Steffanie, the risk definitely passes when the goods have passed over the ship's rail at the port of shipment.

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Steffanie

4 months ago

I think the risk passes with INCOTERM FOB when the goods have passed over the ship's rail at the port of shipment.

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Dominga

5 months ago

I believe the correct answer is when the goods have passed over the ship's rail at the port of shipment, according to the rules.

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Leota

6 months ago

But some may argue that the risk passes when the goods are delivered to the named destination port.

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Page

6 months ago

I agree with Muriel, that's what INCOTERM FOB specifies.

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Muriel

6 months ago

I think the risk passes when the goods have passed over the ship's rail at the port of shipment.

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