Use of
this rule is restricted to goods transported by sea or inland waterway.
In
practice it should be used for situations where the seller has direct access to
the vessel for loading, e.g. bulk cargos or non-containerised goods.
For
containerised goods, consider ‘Carriage and Insurance Paid CIP’ instead.
Seller
arranges and pays for transport to named port. Seller delivers goods, cleared
for export, loaded on board the vessel.
However
risk transfers from seller to buyer once the goods have been loaded on board,
i.e. before the main carriage takes place.
Seller
also arranges and pays for insurance for the goods for carriage to the named
port.
However
as with “Carriage and Insurance Paid To”, the rule only require a minimum level
of cover, which may be commercially unrealistic. Therefore the level of cover
may need to be addressed elsewhere in the commercial agreement.
