When does the primary insurable interest in cargo typically change from the shipper to the consignee?

The primary insurable interest in cargo shifts from the shipper to the consignee at delivery to the consignee because this marks the moment when the consignee takes possession and responsibility for the goods. The consignee has a vested interest in the cargo as they are the intended recipient, and thus, they bear the risk associated with the goods once they are delivered.

This change in insurable interest is significant because it determines who is responsible for any potential loss or damage during transit. Once the cargo is successfully delivered and accepted by the consignee, they assume the financial risk, and the shipper no longer holds that primary interest. Prior to delivery, the shipper retains that interest as they are typically covering the cargo under insurance until the transaction is complete and accepted by the consignee. This principle is fundamental in international trade, where the timing of liability and risk is critical for all parties involved.