Under standard maritime practice, when does risk generally pass?

Under standard maritime practice, when does risk generally pass?

• A. When the goods are unloaded at destination.
• B. When the goods are loaded onto the vessel.
• C. After payment is completed.
• D. Upon signing the bill of lading.

Answer: (B)

Under standard maritime practice, the risk of loss generally passes when the goods are loaded onto the vessel. This moment marks the seller’s delivery obligation being satisfied and the goods moving into the carrier’s custody, so any damage or loss during the voyage falls on the buyer (subject to the contract terms). Signing the bill of lading or payment does not by itself transfer risk, and unloading at the destination occurs after risk has already shifted. The bill of lading is important as a receipt and may reflect loading, but the transfer of risk aligns with when the goods pass onto the carrier, not with payment or later delivery.

Under standard maritime practice, the risk of loss generally passes when the goods are loaded onto the vessel. This moment marks the seller’s delivery obligation being satisfied and the goods moving into the carrier’s custody, so any damage or loss during the voyage falls on the buyer (subject to the contract terms). Signing the bill of lading or payment does not by itself transfer risk, and unloading at the destination occurs after risk has already shifted. The bill of lading is important as a receipt and may reflect loading, but the transfer of risk aligns with when the goods pass onto the carrier, not with payment or later delivery.