Shipping Terms Glossary
Shipping Terms Glossary
Carriage Paid To (CPT)

Carriage Paid To (CPT)

CPT is more common for larger importers shipping containerized freight.

What is Carriage Paid To (CPT)?

CPT is one of the 11 International Commercial Terms (Incoterms) used in trade, where the seller is required to pay for the costs of transporting the goods to an agreed place (named place) .

Bookairfreight - what is CPT?

🚨 Point of Risk Transfer!

When the goods are delivered to the first carrier, the risk is transferred to the buyer. The seller no longer guarantees that the goods will reach the destination in good condition.

When should you choose CPT?

CPT is more common for larger importers shipping containerized freight because they have agents at the port or terminal of import who can assist with the clearance and delivery of goods.

Simple Scenario Time - Incoterm CPT:

E-Commerce Owner (Buyer): Stacy sells computer monitors online in the US market.

Supplier (Seller): An electronics manufacturer located in China.

Agreed Terms: CPT Freight Forwarders Warehouse, Los Angeles, US.

Seller’s duties: In charge of arranging and paying for transportation to their Freight Forwarders Warehouse, Los Angeles.

Buyer’s duties: In charge of all import clearance, insurance and transportation from Freight Forwarders warehouse in Los Angeles and unloading costs at the destination.

Point of Risk Transfer: When the supplier delivers the goods to the freight carrier in China, the risk of the goods must be transferred to the buyer.

Cost allocation. Who pays for what under CPT:

Cost allocation - who should pay what under CPT:

What is the difference between CPT and CIP ?

The only difference is insurance!

Under CIP , the seller is legally obligated to buy insurance for the goods at 110% of their value.

Under CPT , there is no legal obligation to buy insurance but the buyer can purchase it if they wish .

Rajitha Reniguntla

Rajitha Reniguntla is a supply chain enthusiast from Hong Kong. With a curious mind, she's an avid learner carrying a knack for exploring and breaking down complex ideas. She loves to learn about new things and always aims to enhance the customer experience. Outside of work, she enjoys cycling, doodling and listening to podcasts!

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