Certified in Logistics, Transportation and Distribution (CLTD) 2025 – 400 Free Practice Questions to Pass the Exam

CIP, or Carriage and Insurance Paid To, specifically outlines the seller's responsibilities regarding the transport of goods. Under this term, the seller is obligated to cover the costs of both the main carriage and the necessary insurance for the shipment. This means that the seller not only has to arrange and pay for the transport of goods to the designated destination but also must insure those goods against potential loss or damage during transit.

This combination of responsibilities is significant as it offers reassurance to the buyer that they will receive the goods without incurring unforeseen shipping or insurance costs. Furthermore, it places a duty on the seller to ensure appropriate insurance is in place, thereby sharing the risk associated with the transport of the merchandise. The additional options don't encompass this dual responsibility; one suggests only covering the main carriage or just the insurance, which does not align with the comprehensive obligations established under CIP.