CIP Meaning in Logistics

CIP stands for Carriage and Insurance Paid To. It refers to a term used in international trade. It tells that the seller arranges and pays for the carriage of the goods to the destination. Under CIP, the seller pays for the insurance up until the point where the goods are handed over.

Once the shipment is delivered to the specified place, the buyer covers extra insurance. CIP shifts the risk of loss or damage from the buyer to the seller during the transportation of the goods.