Glossary term
CPT
Incoterms rule: the seller pays carriage to a named destination, but risk passes when goods reach the first carrier.
Carriage Paid To. The seller contracts and pays for carriage to the named place and clears the goods for export.
As with CFR, cost and risk separate: risk passes at handover to the first carrier, which under a door-to-door movement may be at the seller’s own premises. The buyer bears risk for a journey the seller is paying for, and is uninsured unless it arranges cover.
CPT suits any mode, including containers. Adding insurance gives CIP.