CPT (Carriage Paid To)
Carriage Paid To means the seller pays transport to the named destination, but risk passes to the buyer when the goods are handed to the first carrier. CPT works for any mode, including containers, air and multimodal moves, which makes it the better container counterpart of CFR. Name the destination precisely and, where useful, the place where risk transfers, because the two may be in different countries.
Related terms
- CIP (Carriage and Insurance Paid To)
CIP works like CPT, but the seller must also insure the cargo for the buyer.
- CFR (Cost and Freight)
Cost and Freight means the seller contracts and pays ocean freight to the destination port, but risk has already passed to the buyer once the goods are loaded on board at origin.
- FCA (Free Carrier)
Free Carrier means the seller hands export-cleared goods to the carrier nominated by the buyer at an agreed place.