@Papa and @Don. you are both partially correct also not quite so...

@Papa and @Don. you are both partially correct also not quite so correct. Whether the contract is FOB or CFR or CIF title passes upon loading aboard the vessel . Consideration or payment is a different matter, whether that be before or after the ship sails. It is correct that if payment is via the banking LC system then payment is largely guaranteed. If however the buyer post ship sinking does not accept the goods or manages to convince its bankers that the documentation is not in accord with the sales contract then payment would be withheld ( could buyers in China possibly have any influence with their bankers !!! ). There is an insurance product that sellers can buy if this potential risk is of concern to them. It is awfully cheap and many exporters of commodities facilitate such insurance. Trust this helps