What is the main difference between CIP and DAP?

They split 1 cost block differently. insurance falls to the seller under CIP and the none under DAP.

Where does risk pass under CIP?

When the goods are handed to the first carrier — same as CPT.

Where does risk pass under DAP?

At the named destination, with the goods still on the arriving vehicle.

Can CIP and DAP both be used for container shipments?

Yes. Both work for any mode of transport, including containers, air and road.

CIP vs DAP: who pays what

CIP is Carriage and Insurance Paid To. DAP is Delivered at Place. Incoterms 2020.

The difference that matters

Insurance:CIPSeller·DAPNeither obliged

Full cost split

Cost block	CIP	DAP
Export clearance	Seller	Seller
Carriage to port / terminal	Seller	Seller
Loading onto main carriage	Seller	Seller
Main carriage (freight)	Seller	Seller
Insurance	Seller	Neither obliged
Unloading at destination	Buyer	Buyer
Import clearance	Buyer	Buyer
Duties and import taxes	Buyer	Buyer
Risk passes	When the goods are handed to the first carrier — same as CPT.	At the named destination, with the goods still on the arriving vehicle.
Transport mode	Any mode	Any mode

What people get wrong

CIP

The 2020 revision raised CIP cover above CIF’s. Contracts copied from pre-2020 templates often still assume they match.

DAP

If the buyer is slow to clear customs, the goods sit and the demurrage lands on the seller, who still controls the carriage contract.

Questions

What is the main difference between CIP and DAP?: They split 1 cost block differently. insurance falls to the seller under CIP and the none under DAP.
Where does risk pass under CIP?: When the goods are handed to the first carrier — same as CPT.
Where does risk pass under DAP?: At the named destination, with the goods still on the arriving vehicle.
Can CIP and DAP both be used for container shipments?: Yes. Both work for any mode of transport, including containers, air and road.

Whichever term you agree, the paperwork has to say so

The Incoterm and named place belong on the commercial invoice, the packing list and the shipper's instructions — spelled the same way on each. ovrseas generates the set from one entry so they cannot disagree with each other.

Commercial invoice template

Compare other pairs

CFR vs CIP CFR vs DAP CIF vs CIP CIF vs DAP CIP vs CPT CIP vs DDP CIP vs DPU CIP vs EXW

Incoterms® is a registered trademark of the International Chamber of Commerce. This page is an independent summary of how costs and risk are allocated and is not affiliated with or endorsed by ICC. For contract drafting, use the official Incoterms® 2020 rules published by ICC.