Meaning
Physical and legal transfer of cargo responsibility from one party in the supply chain to another, documented by a signed delivery receipt or electronic signature. The execution of a custody handoff divides the liabilities of the ocean carrier from those of the overland transport provider. It marks the moment when care and control of the container shifts, establishing the baseline for any subsequent insurance or demurrage claims.
Risk Transition
Responsibility for cargo security transfers to the receiving carrier at the exact moment of physical signature or digital confirmation. If a container is damaged after this event, the receiving transport provider must bear the financial consequences. This transition prevents finger-pointing during multi-modal transport and establishes a clear timeline for loss adjuster investigations.
Document Verification
Checking container seal numbers and physical exterior condition must occur before the transfer is completed. The receiving driver must inspect the container for holes or broken security locks. This verification process creates a reliable record that defends the driver against false claims of cargo tampering or damage incurred during transport, ensuring that the previously responsible party is held liable for older issues.
Liability Boundary
Marine terminal gates serve as the primary border where risk and responsibility are divided between port operators and drayage carriers. When a truck departs the terminal with a container, the terminal operator is released from further storage obligations and on-site damage claims. This boundary is critical for maintaining the separation between port operations and inland transport, which helps logistics managers isolate delays to the correct carrier segment.