What is CPT?
CPT – Carriage Paid To (named place of destination)
CPT is the replacement for old Incoterms C&F (cost and freight) and CFR. This applies to all shipping modes outside of non-containerized ocean shipments.
The seller is responsible for carriage of the goods to the named place of destination. However,seller’s obligation is considered completed once the goods are handed over to the first or main carrier. Crucially the risk also transfers to buyer once the goods are handed over to the carrier at the place of shipment in the country of Export.
The seller is responsible for paying origin costs including export clearance and costs for carriage to the named place of destination.
If the buyer requires the seller to purchase insurance then the Incoterm CIP would be a better fit.