As mentioned earlier, Carriage and Insurance Paid (CIP) applies to any form of transportation, including ocean freight
and air freight
. A railway or even a truck can be considered in this case. The seller organizes transportation for the main carriage, which is usually through a carrier. This is where the exporter also needs to secure necessary export permissions and documentation
. The risk transfers from the exporter to the importer as soon as the goods are loaded on the carrier contracted by the exporter. The exporter bears the risk throughout the major transit stage as it travels towards the agreed-upon destination.
The seller, on the other hand, is liable for the cost of carriage in addition to risk insurance coverage until the freight arrives at the specified location within the scheduled delivery time. The importer has the option of acquiring additional insurance for the goods while they are being transported. Any person or business that transports goods (airline, shipping line, railway, trucking service or freight forwarder
) is considered a carrier1