DDP and unloading accidents:
whose loss is it?

What happened

The equipment was shipped on DDP terms. At destination, while a crane was lifting it off the truck, the lifting strap broke and brand-new equipment worth hundreds of millions of won hit the ground. It was written off as a total loss. The strap that failed was something you can buy for a few tens of thousands of won.

The question I held onto for much longer than the moment of the drop was simple: whose loss is this? The contract said DDP. Did the risk pass when the equipment came through the site gate, or only once it was set down on the ground? And at that moment, was the insurance actually covering it?

This article is what I found out. None of it shows up in a load plan, but if you handle heavy or high-value equipment it belongs in the contract stage.

When risk passes under DDP

Short answer: neither. Under Incoterms 2020 DDP, the seller delivers when the goods are placed at the buyer's disposal on the arriving means of transport, ready for unloading, at the named place of destination. Risk passes to the buyer at that same moment.

So it is not the gate and it is not the ground. It is the moment the truck arrives at the agreed place ready to be unloaded — and unloading itself is not the seller's obligation under DDP. Read on Incoterms alone, a drop during the lift happens inside the buyer's risk.

Among the D rules, DPU is the only one where the seller carries the unloading. "DDP means the seller does everything up to the door" is a common belief — but "everything" does not include unloading.

Why it gets blurry on site

Real sites don't follow Incoterms wording. On DDP deals the seller often arranges the crane and the rigging crew as well. That creates a situation where risk has already passed to the buyer, but the work is being done by the seller's people and equipment. When something goes wrong, both sides can argue it happened in the other's zone.

Two things need to be kept apart:

• Risk — who bears loss from an accident that is nobody's fault. This is what Incoterms allocates.
• Liability — who chose the strap, who checked the rated capacity, who directed the lift. Negligence gives a claim for damages regardless of where risk sat.

Incoterms only interpret the term written in your contract; anything else you agreed in the contract comes first. Wording such as "delivered to site" or "to installation position" becomes the thing to interpret. If you wrote nothing extra, the Incoterms default applies.

Check where the insurance ends

The biggest lesson for me: with insurance, where the cover stops matters more than whether you have it.

• End of cargo cover — the Institute Cargo Clauses (ICC 2009) run cover until completion of unloading from the carrying vehicle at the final destination, but wording and conditions differ by policy. Check that your policy explicitly covers loss during unloading.
• Does the insured match the risk-bearer? — under DDP the seller usually insures for its own risk. During unloading the risk has already passed to the buyer, so whether a claim can be made under the seller's policy for that stretch can become a dispute.
• Crane and rigging contractors' liability cover — these policies often exclude damage to property in the contractor's care, custody or control, which includes the load on the hook. Cover for goods in their custody or during lifting usually needs a separate endorsement.

Walk through each stage where an accident could happen and ask, line by line, "who holds insurance for this exact moment?" — the gaps show up quickly. For new, high-value equipment there is no depreciation, so the loss equals the purchase price, and that gap can often be closed with a single endorsement.

Common reasons a strap fails

Every accident is different, but lifting slings tend to fail for a handful of reasons:

• Sling angle — with a two-leg lift, the wider the angle between the legs, the more force on each leg. At 60° between legs each leg carries about 58% of the load, at 90° about 71%, and at 120° the full 100%. The working load limit (WLL) has to be checked with the angle included.
• Edges — synthetic straps are more often cut by a sharp edge than broken by load. If a corner of the equipment bears on the strap, use edge protection.
• Condition and marking — a strap with a missing or illegible WLL label, or with wear, cuts or heat damage, should not be used.
• Weight — if the documented weight differs from the real weight, every calculation is off. Work from the actual weight including accessories, fluids and packing.

Rated capacity, lifting points and unloading order — the items to plan alongside the load itself — are covered in the unloading checklist in the loading guide.

Before you sign

• Who unloads? If the seller should carry unloading, use DPU or state unloading explicitly on top of DDP.
• Who arranges the crane, slings and banksman — and does that contractor's insurance cover damage to the load during lifting?
• Does the cargo policy run until unloading is complete at destination, and is the insured the party bearing risk at that point?
• For new or high-value equipment, decide in advance whether to add an endorsement for unloading accidents.
• Lift plan — confirm actual weight, lifting points, sling WLL and sling angle in writing before the job.

Related reading

· Handling equipment, lifting points and unloading order — Container loading guide
· Choosing a box for heavy cargo — 20ft vs 40ft guide
· Open tops and flat racks that need crane handling — Container types explained
· When the seller cannot be the local importer, as in the Gulf — DDP to the Middle East: who holds the import licence?

Trade terms and site risk — series

· DDP and unloading accidents (this article)
· DDP to the Middle East: who holds the import licence?
· EXW vs FCA: dropped while loading at the factory
· FOB and CIF: dropped while loading on board
· CIF vs CIP: what the insurance actually covers