Freight Forwarding & Incoterms: Key Terms Explained in Detail

A handover point is the specific location where custody of cargo officially transfers from one party to another in the logistics chain. This could occur at a warehouse, terminal, port gate, carrier facility, or even at the customer’s doorstep, depending on the agreement. At this point, one party completes its responsibility for the cargo, and the next party assumes control, risk, and accountability. Clear identification of the handover point helps prevent misunderstandings about who is responsible for the cargo at each stage.

The handover point is usually defined in contracts, transport documents, or Incoterm agreements. It marks the moment where liability shifts, for example, from seller to buyer, or from shipper to carrier. Proper documentation and verification, such as signatures, timestamps, or digital scans, ensure that the transfer is recorded accurately. This protects all parties involved by establishing a clear audit trail.

Knowing the exact handover point also supports operational planning. Each party can prepare equipment, staff, and schedules to manage the cargo efficiently. It reduces delays, supports smooth coordination, and ensures compliance with regulatory or contractual requirements. When defined well, the handover point enhances transparency and prevents disputes over damage, delays, or responsibility.

Overall, the handover point is a key reference in cargo movement. It clarifies roles, ensures accountability, and keeps the logistics process organized. By establishing a clear moment when custody changes hands, it supports smooth cargo flow from origin to final destination.