# Carriage Paid To (CPT)

*Last updated: 2026-06-24*

> A buyer in Hamburg agrees CPT terms with a supplier in Shanghai: the supplier books and pays for the entire freight to Hamburg, yet the risk passes to the buyer the moment goods are handed to the first carrier in China.

A buyer in Hamburg agrees CPT terms with a supplier in Shanghai: the supplier books and pays for the entire freight to Hamburg, yet the risk passes to the buyer the moment goods are handed to the first carrier in China. That gap between who funds the shipment and who bears the transit risk is CPT's (Carriage Paid To) defining characteristic – and its most frequent source of misunderstanding. The Incoterm covers all modes of transport, including multimodal chains. Unlike CIP, CPT imposes no obligation on the seller to arrange cargo insurance; from first carrier handover onward, the buyer is fully exposed and must secure independent cover. For anything beyond low-value consignments, freight forwarders consistently advise buyers to take out their own transport insurance whenever CPT terms apply.

**Source:** [https://iccwbo.org/business-solutions/incoterms-rules/](https://iccwbo.org/business-solutions/incoterms-rules/)

## Quick Facts

| Property | Value |
|---|---|
| Term | Carriage Paid To (CPT) |
| Language | EN |
| Word count | 128 |
| Last updated | 2026-06-24 |
| Source | https://iccwbo.org/business-solutions/incoterms-rules/ |

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