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CPT (Carriage Paid To) is a shipping term used in international trade, defined by the Incoterms® 2020 rules. It means that the seller pays for the carriage (transportation) of the goods to a named destination, but the risk transfers to the buyer once the goods are handed over to the first carrier (e.g., a trucking company, airline, or shipping line) at the origin.
Key Features of CPT:
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Seller’s Responsibilities:
- Arrange and pay for transportation to the agreed destination.
- Handle export customs clearance and duties.
- Deliver goods to the first carrier (risk transfers here).
- Provide necessary shipping documents to the buyer.
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Buyer’s Responsibilities:
- Assume risk once goods are handed to the first carrier.
- Handle import customs clearance and duties.
- Pay for unloading and further transportation (if needed).
3.Suitable for All Transport Modes (sea, air, road, rail, or multimodal).
Comparison with Other Incoterms:
- Similar to CFR (Cost and Freight), but CFR is only for sea freight, while CPT applies to all transport modes.
- Like FCA (Free Carrier), but under FCA, the seller’s responsibility ends at a named location, whereas CPT requires the seller to pay for transport to the destination.
When to Use CPT?
- When the buyer wants the seller to arrange transport but is willing to take on risk early.
- For multimodal shipments (e.g., truck + air or rail + sea).
Advantages & Disadvantages:
✔ Seller controls freight costs (good for bulk shipments).
✔ Flexible for different transport modes.
✖ Buyer bears risk early (even before reaching the final destination).
✖ Requires clear agreement on delivery points.
Would you like a comparison between CPT and other Incoterms like CIP or DAP?
