CPT (Carriage Paid To)
An Incoterm where the seller pays carriage to a named destination, but risk passes to the buyer when goods are handed to the first carrier.
TL;DR: CPT means the seller pays transport to a named destination, but risk passes to the buyer when the goods are handed to the first carrier in the origin country.
CPT can be used for any mode of transport, including sea, air, rail, road and multimodal shipments. The seller clears the goods for export, contracts the carriage, and pays freight to the named place, such as “CPT Los Angeles” or “CPT Dubai airport.” The buyer handles import clearance, duties and any costs not included in the carriage contract.
Like CFR, CPT splits cost and risk at different points. The seller pays freight all the way, but the buyer bears the risk during the main journey. The seller has no duty to insure the goods. If you buy on CPT, it is wise to arrange your own cargo insurance.
If there are several carriers, risk passes at the handover to the first one, unless the contract says otherwise. For a shipment from a factory in China, this could mean risk passes when a trucking company collects the goods, long before they reach the port. If you want risk to pass later, name that point in the contract.
CPT is often a better choice than CFR for container cargo, because it matches how containers are handed over at inland depots or terminals. Compare with CIP, which adds insurance, and with CFR and FCA.