GlossaryEN1 min readUpdated: Jun 26, 2026
CPT (Carriage Paid To)
CPT (Carriage Paid To) is an Incoterm in which the seller contracts and pays for carriage to a named destination but transfers risk to the buyer as soon as the goods are handed to the first carrier.
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Source: https://iccwbo.org/business-solutions/incoterms-rules/
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Incoterms 2020 Simulator: Who bears costs & risk?
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Definition & Explanation
CPT (Carriage Paid To) is an Incoterm in which the seller contracts and pays for carriage to a named destination but transfers risk to the buyer as soon as the goods are handed to the first carrier. This split between cost and risk is the defining feature of CPT and the point most often overlooked in practice. Insurance is not included in the seller's obligations; the buyer must arrange cover independently if required. CPT is suitable for any transport mode or combination of modes and is frequently used in air freight and multimodal shipments. Where the buyer requires the seller to provide cargo insurance as well, CIP is the appropriate alternative.
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⚖️ ICC Incoterms 2020
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