CPT Explained: Carriage Paid To Delivery Term
CPT (Carriage Paid To) is an Incoterms 2020 term where the seller pays freight to the named destination, but risk transfers when goods are handed to the first carrier at origin. It is the multi-modal equivalent of CFR.
What Is CPT?
CPT (Carriage Paid To) is an Incoterms 2020 delivery term where the seller pays the freight cost to the named destination but risk transfers to the buyer when goods are delivered to the first carrier at origin. This creates two different transfer points: cost transfers at destination, risk transfers at origin.
CPT works for all transport modes (road, sea, air, rail, multimodal) and is the multi-modal equivalent of CFR (sea-only).
Responsibility Split
| Task | Seller | Buyer |
|---|---|---|
| Export customs | Yes | |
| Main freight (payment) | Yes | |
| Risk after carrier handover | Yes | |
| Insurance | Yes | |
| Import customs | Yes |
CPT vs CIP
Only difference: CIP requires seller to arrange insurance (minimum ICC-A). CPT has no insurance obligation. For insured freight, use CIP.
Frequently Asked Questions
CPT vs DAP?
CPT: risk at origin. DAP: risk at destination. DAP is safer for the buyer.
Insurance required?
No, but recommended since risk transfers at origin. Buyer should arrange coverage.
What modes?
All modes: road, sea, air, rail, multimodal.
CPT vs CFR?
Same logic. CFR is sea-only. CPT is multi-modal.
References
- ICC Incoterms 2020
Related Articles
FCL vs LCL: Container vs Partial Load Shipping
FCL (Full Container Load) dedicates an entire container to one shipper; LCL (Less Container Load) shares container space among multiple shippers. FCL is cheaper above 15 m³; LCL is ideal for 1-14 m³ shipments.
Customs Broker vs Customs Agent: Same Role, Different Names
Customs broker (US/international), customs agent (UK), and customs representative (EU) all refer to the same profession: licensed professionals who clear goods through customs on behalf of importers and exporters.
Air vs Road Freight: Speed vs Cost Guide
Air freight delivers in 1-3 days but costs 3-8 EUR/kg. Road freight takes 5-10 days at 120-160 EUR/m³. Air suits urgent, small, and high-value shipments; road suits volume and standard timelines.
Road vs Sea Freight: Mode Selection Guide
Road freight is fast (5-10 days) and flexible with door-to-door service. Sea freight is economical for large volumes but slower (10-18 days). The right mode depends on volume, urgency, and budget.