GlossaryEN1 min readUpdated: Jun 14, 2026

Carriage Paid To (CPT)

Under Incoterms 2020, CPT (Carriage Paid To) is the term of choice when the seller agrees to pay freight to a named destination while limiting its risk exposure to the first handover.

Last updated: 14 June 2026Published: 19 June 2025

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

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Under Incoterms 2020, CPT (Carriage Paid To) is the term of choice when the seller agrees to pay freight to a named destination while limiting its risk exposure to the first handover. The seller contracts and pays the carrier to the agreed point; however, risk of loss or damage passes to the buyer as soon as the goods are delivered to the first carrier – which is typically well before the named destination. This split between cost responsibility and risk transfer is the defining – and frequently misunderstood – feature of CPT. The buyer must arrange cargo insurance independently. CPT applies to any mode of transport and is particularly common in multimodal and air freight shipments; unlike CIP, it does not oblige the seller to procure insurance.

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Carriage Paid To (CPT)

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