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What is CPT – Carriage Paid To (named place of destination)?





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What is Carriage Paid To (CPT)?

Otherwise known as carriage paid to, CPT is an international commercial term which means that the seller delivers the goods at their expense to a carrier or another person. CPT is also a replacement for old incoterms of C&F and CFR— cost and freight. This applies to all shipping modes outside of non-containerized ocean shipments.

Who is responsible for the carriage of goods? 

The seller is responsible for the carriage of the goods to get to a given destination. The seller’s obligation is considered done, only once the goods are handed over to the first or main carrier in the place of destination. If the buyer requires the seller to purchase insurance, then the Incoterm CIP (carriage and insurance paid to) would be a better fit for the transaction. Additionally, the carrier could be the person responsible for the carriage (by sea transport, rail, road, etc.) of the goods, or the person or entity enlisted to procure the performance of the carriage. 

What is included in the CPT price? 

The CPT price often includes Terminal Handling Charges (THC) in their freight rates, export fees, and taxes required by the country of origin.




Tags: incoterms

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