GlossaryEN1 min readUpdated: Jun 13, 2026

CPT Transit Risk

Under CPT, the buyer assumes full transit risk – loss, damage, or delay during carriage – even though the seller pays freight charges.

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Last updated: 13 June 2026Published: 27 January 2026

Source: https://iccwbo.org/resources-for-business/incoterms/

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Definition & Explanation

Under CPT, the buyer assumes full transit risk – loss, damage, or delay during carriage – even though the seller pays freight charges. This risk passes to the buyer upon delivery to the first carrier, regardless of subsequent legs or the seller's insurance arrangements. Cargo insurance is therefore essential for the buyer to mitigate financial exposure. The seller's liability is limited to proper handover to the carrier and ceases thereafter. This risk allocation is the defining feature of CPT versus cost-inclusive terms like CIP.

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CPT Transit Risk

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