What is CPT – Carriage Paid To?

What is CPT?

Also known as Carriage Paid To, CPT is an international commercial term that 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.

According to the CPT Incoterm, what is the seller’s responsibility?  

According to the CPT Incoterm, the seller is responsible only for arranging freight transportation to the destination. The seller is not responsible for insuring the shipment of the goods during transportation. The seller’s obligation is considered done once the goods are handed over to the first or main carrier at the destination. 

What charges are 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.

Additioal Notes about CPT:

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.