What term describes the seller's responsibility for loss or damage until goods are placed on board the vessel?

The term that describes the seller's responsibility for loss or damage until goods are placed on board the vessel is indeed Free On Board (FOB). Under the FOB designation, the seller retains responsibility for the goods, including any risk of loss or damage, until the goods are loaded onto the shipping vessel. At that point, the responsibility shifts to the buyer.

This arrangement is significant in international trade as it clearly delineates when the liability for the goods transfers from the seller to the buyer, which can impact insurance needs and risk management strategies. The buyer assumes the risk as soon as the goods are aboard the vessel, indicating that the seller has fulfilled their obligations by that time.

The other terms listed represent different responsibilities and stages of shipping. Delivered Duty Paid (DDP) refers to the seller's responsibility for all costs and risks up to the delivery of goods, while Cost, Insurance, and Freight (CIF) includes costs covered by the seller until goods are shipped, which encompasses the cost, insurance, and freight to a specified destination. Ex Works (EXW) specifies minimal responsibility for the seller, who only has to make the goods available at their premises. Each term defines a distinct set of obligations and liabilities in the shipping process, making understanding