What is Carriage & Insurance Paid To (CIP)?

An in depth look at the incoterm; CIP..

Carriage & Insurance Paid To

Carriage & Insurance Paid To is one of the eleven incoterms and shouldn’t be confused for its sibling of the rulings; Carriage Paid To (CPT)

Although they share a lot of the same values, there is a subtle difference between the two. CPT and CIP can be used for any transport mode whether this be land, sea or air.. The seller is still responsible for arranging carriage from his warehouse to the named place, however with this, is also responsible for insuring the goods during transit.  You should note that the risk placed on the seller ends once the goods have been delivered to the carrier in the origin country.


What is Not Included Within The Incoterm Carriage & Insurance Paid To? 

Terminal Handling Charges (THC)

Similar to CPT, Terminal Handling Charges once again could be the responsibility of the buyer . THC are charges made by the terminal operator (usually the airline or the shipping line) and the buyer should always enquire beforehand to see whether these are included within their freight rates. On larger shipments the THC could easily be hundreds of pounds.

Increased Insurance Cover

If the steps have been followed correctly, the seller should have already arranged insurance for the journey, however, the rule only requires the bare minimum cover which may in turn be commercially unrealistic. The level of cover may well need to be addressed elsewhere within the commercial agreement. As a buyer you may wish to distinguish early doors what type of cover has been provided.

If you find you are having issues or are unsure whether a higher rate of insurance should be purchased, don’t hesitate to contact us at Tudor International Freight.


CIP Overview 

Carriage & Insurance Paid To (CIP) and Carriage Paid To (CPT) are separate incoterms and should not be confused.

If the incoterm CIP is being used, the seller is responsible for arranging carriage to its named destination as well as insuring the goods.

Be careful with your insurance. The ruling only requires the seller to purchase minimum cover, if this seems unrealistic, address this within the commercial agreement or ask for help.


If you have any questions regarding the use of “Carriage & Insurance Paid To (CPT)” or any other incoterm, please feel free to contact our team on 0113 250 1155 or email sales@tudorfreight.com








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