Other MOPs have a specified transportation limit. You will need to be concerned about the transportation limit if there is one specified in the MOP you are using. For example, one account in South Dakota refurbishes airplane parts. The issue is to be sure that the limit is adequate. An increasing number of firms are doing business with European and Pacific Rim businesses.
Shipments can originate in the United States or in a foreign country.
There are no fixed rules of commerce in these transactions. Some American firms rely on their own insurance to protect losses they might incur to goods damaged in transit. Identifying transit exposures requires knowing when the title to the goods transfers from the seller to the buyer. If the United States firm is shipping an item and the title to the goods transfers to the foreign buyer immediately upon leaving the USA shipping dock, the goods are being shipped f.o.b. origin and the United States firm has no interest in the shipment. However, sometimes the United States firm ships goods specifying that the title to the goods transfers to the foreign buyer when the goods arrive at the foreign firm's receiving dock.