GlossaryEN1 min readUpdated: Jun 16, 2026

Carriage Paid To (CPT)

Under Incoterms 2020, CPT (Carriage Paid To) applies when the seller agrees to pay freight charges to a named destination but limits its risk exposure to the first handover point.

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Last updated: 16 June 2026Published: 19 June 2025

Source: https://iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/

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Definition & Explanation

Under Incoterms 2020, CPT (Carriage Paid To) applies when the seller agrees to pay freight charges to a named destination but limits its risk exposure to the first handover point. The seller contracts and pays the carrier for the full journey to the agreed place; risk of loss or damage, however, transfers to the buyer as soon as the goods are handed over to the first carrier – typically well before the named destination. This split between cost responsibility and risk transfer is the defining feature of CPT, and it is frequently misread in practice. The buyer must arrange cargo insurance independently. CPT is mode-neutral and particularly common in multimodal and air freight shipments; unlike CIP, it carries no obligation for the seller to procure insurance.

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Carriage Paid To (CPT)

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Related Terms

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Carriage and Insurance Paid to (CIP)

Delivered Duty Paid

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Duty Drawback

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