PLATINO INSIGHTS / Logistics decisions
Paying to destination does not mean carrying all the risk
The distinction that changes how you read a CPT, CIP, CFR or CIF offer.
Two separate questions
Who contracts transport? Where does risk pass between seller and buyer? These are different questions. An offer can include freight to destination and still transfer risk before arrival. Identify both points during negotiation and record them precisely.
Read the rule with the transport mode
CPT and CIP can cover different modes; CFR and CIF are for sea and inland waterways. Under C terms, delivery and risk transfer happen before arrival at the paid destination. The precise point depends on the rule: carrier handover or loading on board, as applicable.
Review insurance separately
CIF and CIP impose seller insurance duties with different default levels under Incoterms® 2020: clauses C for CIF and A or similar for CIP. Review the agreement and policy, including exclusions, deductibles and the covered journey. A rule name does not mean any loss will be reimbursed.
Bring the discussion back to your purchase
Ask the supplier for the delivery point, paid destination, rule and edition. Confirm who handles import clearance and onward legs. For containers handed to a carrier before vessel loading, consider whether FCA better describes the agreement.
Apply it to your operation
- Rule + named place or port + edition.
- Delivery and risk point identified.
- Paid destination identified.
- Import responsibility defined.
- Policy and scope reviewed when applicable.
Introductory content. Each operation requires review of its own documents and circumstances.
