CPT, or Carriage Paid To, is an Incoterm utilised in international trade contracts, specifically for sea and inland waterway transport. When employing CPT (Carriage Paid To), understanding the buyer and seller’s responsibilities is essential.
Under CPT terms, the seller is responsible for delivering the goods to a named destination agreed upon with the buyer. The seller arranges and pays for transportation to this destination, including any main carriage costs, but not insurance. Once the goods are delivered to the carrier, the risk transfers from the seller to the buyer.
CPT is often used when the buyer wants the seller to handle transportation but prefers to arrange their own insurance. Therefore, CPT focuses on carriage costs, not insurance. CPT is particularly suitable if the buyer prefers to manage its own transport insurance.
