Legal Definitions - port of delivery

The port of delivery refers to the specific location, such as a harbor, airport, or designated terminal, where goods being transported are intended to be unloaded from the carrier and made available to the consignee or recipient. This location is a critical point in shipping and sales contracts, as it often signifies the moment when the seller's obligation for transportation ends and the risk of loss or damage to the goods typically transfers from the seller or shipper to the buyer or receiver.

• Example 1 (International Sea Freight): A furniture manufacturer in Vietnam sells a large shipment of chairs to a retail chain in Canada. Their sales contract specifies "CIF Vancouver Port." This means the Vietnamese manufacturer is responsible for the cost, insurance, and freight up to the Port of Vancouver. Once the cargo ship arrives and the chairs are unloaded at the Port of Vancouver, it becomes the port of delivery, and the Canadian retailer assumes responsibility for customs clearance, further transport, and any risks to the goods.

• Example 2 (Air Cargo): A technology company in South Korea ships a consignment of new smartphones to a distributor in Germany. The air waybill for the shipment lists "Frankfurt Airport (FRA)" as the destination. Frankfurt Airport is the designated port of delivery. Upon the aircraft's arrival and the smartphones being made available for collection at the airport's cargo terminal, the airline's responsibility for the air transport concludes, and the German distributor becomes responsible for taking possession of the goods.

• Example 3 (Domestic Rail Freight): A steel mill in Pennsylvania sells a quantity of steel beams to a construction company in Ohio. Their agreement states "FOB Rail Yard, Cleveland." In this scenario, the specific rail yard in Cleveland acts as the port of delivery. The steel mill is responsible for getting the beams onto the train and to this rail yard. Once the train arrives and the beams are ready for unloading at the Cleveland rail yard, the construction company takes over responsibility for the goods.