Carriage Paid To (CPT)

Carriage Paid To (CPT) is an Incoterm where the seller pays for transportation to a named place. The risk transfers to the buyer once the goods are handed over to the first carrier. The buyer is responsible for insurance and further transportation.

In CPT, the seller arranges and pays for the main carriage. The buyer assumes risk and responsibility after the goods are handed to the first carrier. The buyer must handle insurance and any additional transport costs.

Examples of significant instances include:

• Shipping from a factory to a port
• Transporting goods from a port to a warehouse
• Delivering items from a warehouse to a retail store

The seller’s obligations end when the goods are handed to the first carrier. The buyer’s responsibilities begin at this point, including insurance and further transport.