How to Set Incoterms and Freight Risk on Reserved B300 Orders

Consider an illustrative procurement failure: a reserved Supermicro HGX B300 shipment reaches the receiving dock with a crushed crate and a triggered tilt indicator. The buyer assumed “freight included” meant the supplier owned the transit risk. The supplier says risk passed at carrier pickup. Neither party can immediately produce insurance covering that handoff.

The truck arrived. The commercial agreement did not.

For Pacific Intelligent Technologies, Inc., the founder-playbook lesson is straightforward: treat freight as a contractual responsibility map, not a shipping line item. For equipment purchase orders tied to reserved capacity, establish exactly what is being sold and transported. A capacity reservation alone does not necessarily transfer equipment ownership.

Specify the Incoterm, edition, and exact named point

Write the term as “[rule] [precise named place or point], Incoterms® 2020.” A city name is rarely enough. Include the facility address and, where relevant, the receiving dock or carrier terminal.

Choose the rule around the intended handoff:

• FCA: The buyer generally arranges main carriage. The seller handles export clearance; delivery and loading obligations depend on the named point.
• CPT or CIP: The seller pays carriage to the named destination, but risk generally transfers when the goods are handed to the carrier—not upon arrival. CIP also requires seller-procured cargo insurance.
• DAP: The seller bears risk to the named destination, with goods ready for unloading. The buyer handles unloading and import clearance.
• DPU: The seller’s delivery obligation includes unloading at the named destination.
• DDP: The seller handles import clearance and applicable duties. Confirm it can legally perform those obligations before choosing this rule.

For containerized or multimodal server shipments, do not default to FOB or CIF; those rules are intended for sea and inland-waterway transport.

Allocate accessorial charges explicitly: appointments, lift equipment, detention, storage, redelivery, and special handling. “Freight prepaid” is a payment description, not a complete risk allocation.

Separate title transfer from transit risk

Incoterms allocate delivery obligations, costs, and risk. They do not determine ownership transfer.

Give title its own clause, identifying the equipment through serial numbers or an agreed shipment schedule. Have counsel align it with governing law, retention-of-title provisions, and any lender interests.

Keep three concepts separate:

• Title: When ownership passes.
• Risk of loss: Who bears physical loss or damage at each transport stage.
• Receipt: What the receiving signature acknowledges.

A signed delivery receipt is not automatic acceptance of the reserved system under acceptance criteria; it is evidence of physical receipt condition.

For the broader commercial scope, review reserved GPU capacity options; then make the equipment PO govern its particular shipment.

Lock packing and coolant-handling standards

Reserved B300 systems are sensitive to orientation, shock, moisture, and fluid state. Require OEM-aligned packing instructions in the PO, including:

• OEM-approved orientation, lifting points, restraints, and shock limits.
• Whether components ship installed or separately.
• Moisture protection and permitted storage conditions.
• Coolant state under OEM instructions: drained, purged, or filled as expressly approved.
• Protected and capped fluid connections, with leak-containment requirements where applicable.
• Crate dimensions, gross weight, center-of-gravity markings, and handling restrictions.
• ISPM 15 compliance for regulated wood packaging, where required.

Require dated packing photographs, crate identifiers, serial-to-crate mapping, and any specified shock or tilt indicators.

Allocate responsibility for damage caused by inadequate packing. A carrier’s clean pickup receipt does not prove that internal blocking or coolant preparation was correct.

Assign customs documents and insurance ownership

Name who prepares, checks, and supplies the commercial invoice, packing list, origin information, transport documents, and required export or import authorizations. Identify the exporter and importer of record consistently with the selected rule and applicable law.

Set document deadlines before pickup. Require accurate descriptions and agreed responsibility for classification review; do not leave customs paperwork to whichever party answers first.

Insurance needs its own schedule:

• Who obtains coverage and pays the premium.
• Insured parties and loss-payee arrangements.
• Insured value, deductible, and who absorbs uninsured amounts.
• Covered route, transfers, temporary storage, loading, and unloading.
• Relevant exclusions and notice deadlines.

CIP’s insurance obligation is not a substitute for reviewing the policy. Check coverage for the actual equipment and route, especially exclusions involving inadequate packing, mechanical derangement, moisture, or coolant leakage. Physical-damage insurance also may not cover delay-related business losses.

Write the damage-claim workflow before dispatch

Assign a claims lead and require both parties to preserve evidence and cooperate, even when liability is disputed.

The PO should require prompt inspection, photographs before and during unloading, specific damage exceptions on the delivery receipt, retention of packaging, and notification within applicable carrier and insurer deadlines. Define the concealed-damage reporting process too.

State who files against the carrier, who notifies the insurer, and who authorizes surveyors or salvage. Also specify whether the supplier must repair or replace transit-damaged goods without waiting for claim proceeds, consistent with the agreed risk allocation.

Dock delivery is not installation responsibility. Keep those boundaries explicit without turning the freight clause into a commissioning plan.

Before releasing a reserved B300 PO, schedule a procurement discussion to identify unresolved freight handoffs.

FAQ

Does “freight included” mean the supplier bears transit risk?

No. Freight payment and risk transfer are separate. Specify both, alongside the commercial scope described in Pacific’s capacity overview.

Can temporary capacity address a damaged shipment’s delay?

Potentially. Bridge capacity is a separate continuity option, not cargo insurance or an automatic contractual remedy.

Where should procurement start?

Start with Pacific Intelligent Technologies, Inc., then assemble one freight schedule covering the named delivery point, title, packing, customs documents, insurance, and claims ownership.