Understanding CIP Shipping Terms: A Complete Guide for International Trade
CIP (Carriage and Insurance Paid): this is a very common Incoterm where sellers are responsible to organize transportation and minimum insurance, to a named destination but the risk passes to buyers to the first carrier when the products are delivered. This cargo term benefits both the sides due to the distribution of responsibility, followed with obligatory insurance cover and its flexibility in various means of transport. How to succeed in CIP? It is important to learn cost structure, document properly, comply with regulations, and choose a competent logistics partner. As international trade is still developing using digital technologies and the issue of sustainability, CIP is a potentially useful instrument of global shipment coordination with the consideration of both risk and cost between trading partners.