CIP Incoterm: Definition, Responsibilities, & Shipping Terms
CIP(Carriage and Insurance Paid To) is a common term in international trade that outlines what the seller is responsible for. Under CIP, the seller must deliver the goods to the agreed-upon carrier and pay for the freight costs to get them to the destination. The seller must also purchase insurance to protect the buyer while […]
Understanding Shipping Term CIP in International Trade
Therefore, it is crucial to maintain a proper understanding of the shipping term CIP (Carriage and Insurance Paid to) for international business buyers and sellers. It specifically defines the final place where the cost of freight and insurance rest with the seller. Being aware of how sellers pay and buyers operate under CIP and the peculiarities of insurance and freight prices will help companies cooperate more effectively in global shipping. In any case, having information on CIP, CIF, DAP and other Incoterms, will help parties to reduce the risks and, therefore, make the international transaction as regular and as uninterrupted as possible given the constant changes of the supply chain world.
