CIP (Carriage and Insurance Paid To)

CIP is ideal for complex, multimodal shipments crossing multiple countries and transport modes where a single port-based Incoterm doesn’t apply. The seller handles all logistics arrangements and insurance, simplifying the buyer’s role—they just receive goods at the final destination. CIP places maximum responsibility and cost on the seller; buyers benefit from turnkey delivery. CIP is increasingly common as supply chains become more complex and goods move via multiple transport modes simultaneously.

A buyer purchases goods from a seller under CIP terms to a named destination (not just a port). The seller arranges all transportation (truck to port, sea freight, final truck delivery), purchases cargo insurance covering the entire journey to destination, and pays all costs upfront. Once goods are handed to the first carrier (truck driver at pickup), risk transfers to the buyer, though the seller’s insurance protects the buyer. The seller provides the bill of lading, insurance certificate, and delivery documentation. The buyer receives goods at the final destination.