GlossaryEN1 min readUpdated: Jun 24, 2026

Carriage Paid To (CPT)

Quick Answer

Last updated: 24 June 2026Published: 19 June 2025

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

Category

Incoterms 2020 Simulator: Who bears costs & risk?

Reading time

1 min

Words

128

Mentioned in

–

Definition & Explanation

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.

Next steps

Tools that match this term

Compare IncotermsClarify duties, cost and riskOpen Check transport insuranceEstimate coverage and premiumOpen Calculate transit timeEstimate duration per transport modeOpen

Related Terms

You might also be interested in these terms

Carriage Paid To

Carriage Paid To (CPT) is an Incoterms trade term under which the seller contracts for carriage and pays the freight charges to th…

Learn more

Carriage and Insurance Paid to (CIP)

Exporters and freight forwarders turn to CIP (Carriage and Insurance Paid to) when they need to provide the buyer with both prepai…

Learn more

Delivered Duty Paid

Delivered Duty Paid (DDP) sits at the far end of the Incoterms spectrum: unlike EXW, where the buyer does almost everything, DDP p…

Learn more

DDP (Delivered Duty Paid) – customs debt

DDP (Delivered Duty Paid) places the customs debt entirely on the seller: the seller is responsible for paying all duties, taxes, …

Learn more

Delivered Duty Paid (DDP)

By the time goods arrive under DDP terms, the seller has already handled everything: transport, import formalities, customs duties…

Learn more

Duty Drawback

Duty drawback is the full or partial refund of import duties paid on goods that are subsequently exported, processed and then expo…

Learn more

⚖️ ICC Incoterms 2020

Incoterms 2020 Simulator: Who bears costs & risk?

Analyze all 11 Incoterms 2020: cost matrix, risk timeline, insurance gap detector and customs responsibility – free, no login required.

Incoterms Simulator →

Logistics knowledge straight to your inbox

Weekly: Top news, industry facts and insights from the world of logistics – free.

Carriage Paid To (CPT)

Next steps

Related Terms

Carriage Paid To

Carriage and Insurance Paid to (CIP)

Delivered Duty Paid

DDP (Delivered Duty Paid) – customs debt

Delivered Duty Paid (DDP)

Duty Drawback

Incoterms 2020 Simulator: Who bears costs & risk?

Logistics knowledge straight to your inbox

Community Questions & Answers