incoterms 2010 CIP


All shipping is done via Network Oceanlines Inc. (NOI) ‐ private bulk carrier and subsidiary of NHI (Network Hosts Inc).  NOL has a variety of converted tanker ships, flat barges, and deep water barges. The smallest shipping vessels have a cargo capacity of 30,000 MTW while the larger deep water barges can carry cargo in excess of 150,000 MTW.


Deep water barges used primarily for shipping scrap steel are of the following dimensions:

  • 450 ft x 250 ft / draft 26 ft
  • 450 ft x 150 ft / draft 26 ft
  • 350 ft x 150 ft / draft 22 ft
  • 250 ft x 150 ft / draft 26 ft
  • 150 ft x 75 ft / draft 26 ft


There are a wide variety of barges in use worldwide, and when it comes to ocean shipping, NOI uses two... converted single hull tankers (some with engine, some without) and deep ocean hopper barges with dehumidifiers.  NOL got its start several years ago buying single hull oil tankers and converting them for hauling scrap and iron ore, that way if a ship/barge is lost it creates a “reef” rather a “slick”.


Incoterms 2010

CIP :: CARRIAGE AND INSURANCE PAID TO (to named place of destination)

"Carriage and Insurance paid to..." means that the seller delivers the goods to the carrier nominated by him but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer bears all risks and any additional
costs occurring after the goods have been so delivered. However, in CIP the seller also has to procure insurance against the buyer’s risk of loss of or damage to the goods during the carriage.

Consequently, the seller contracts for insurance and pays the insurance premium.

The buyer should note that under the CIP term the seller is required to obtain insurance only on minimum cover1. Should the buyer wish to have the protection of greater cover, he would either need to agree as much expressly with the seller or to make his own extra insurance arrangements.

"Carrier" means any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport, by rail, road, air, sea, inland waterway or by a combination of such modes.

If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier.

The CIP term requires the seller to clear the goods for export.

This term may be used irrespective of the mode of transport including multimodal transport.

ICC publication 560 – copies of the full version are available from ICC Publishing