GlossaryEN1 min readUpdated: Jun 26, 2026
CPT (Carriage Paid To)
CPT – Carriage Paid To – means the seller contracts and pays for freight to the named destination, but risk passes to the buyer as soon as the goods are handed over to the first carrier at the point of origin.
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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 – means the seller contracts and pays for freight to the named destination, but risk passes to the buyer as soon as the goods are handed over to the first carrier at the point of origin. The freight bill is the seller's; the risk from that moment on is the buyer's. This split between cost responsibility and risk transfer is the defining – and often misunderstood – feature of CPT. The buyer must arrange its own cargo insurance and is responsible for import clearance and duties at destination. CPT applies to all modes of transport, including multimodal shipments, and is commonly chosen when sellers have favourable freight rates but buyers prefer to manage their own insurance coverage. Unlike CIP, there is no seller obligation to insure the goods.
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