GLOSSARY
CPT (Carriage Paid To)
Incoterm where the seller pays freight to a named destination but risk transfers when goods reach the first carrier.
Carriage Paid To is an Incoterms 2020 rule where the seller contracts and pays for carriage to a named destination, but risk of loss or damage passes to the buyer when goods are delivered to the first carrier.
Why it matters
CPT splits the cost and risk transfer points: you pay freight to the destination, but your liability ends at the origin handoff. This distinction catches many first-time shippers off guard. If cargo is damaged mid-transit, the buyer bears the loss unless they arranged insurance.
Unlike CIP, CPT does not require the seller to provide insurance. Buyers should confirm coverage before shipment or negotiate a CIP term instead. The ICC Incoterms 2020 rules at iccwbo.org detail the exact delivery and documentation obligations.