The key trade terms for air shipments to specified airports are categorized by insurance coverage:

1. CIP (Carriage and Insurance Paid To - Destination Airport)

• Seller's Obligations:

• Delivers goods to the named destination airport

• Covers all transport costs and minimum insurance (110% of cargo value)

• Risk Transfer: When goods are handed to the first carrier (e.g., airline or forwarder)

• Note:

• The air equivalent of CIF (but for air transport)

• Must specify airport (e.g., CIP Shanghai Pudong International Airport)

2. CPT (Carriage Paid To - Destination Airport)

• Seller's Obligations:

• Pays freight to destination airport (no insurance)

• Risk Transfer: Same as CIP (upon delivery to first carrier)

Additional Notes

Other Applicable Terms:

• FCA (Free Carrier): When seller only needs to deliver goods to the buyer’s nominated forwarder.

• EXW (Ex Works) / FOB Airport: For buyer-collected shipments without seller’s clearance assistance.

Critical Reminders:

⚠️ Never mix sea terms (e.g., CIF, FOB) with air terms – their risk/expense structures differ fundamentally:

• Sea terms use "ship’s rail" as risk point; air terms use "first carrier".

• Airport handling fees ≠ port charges.