CPT Incoterms 2020 — Complete Logistics Guide

CPT (Carriage Paid To) is one of the 11 delivery terms defined under Incoterms 2020 by the ICC. Under CPT, the seller delivers goods to the carrier, completes export clearance, and pays freight to the named destination. However, risk transfers when goods are handed to the first carrier — not at destination. This separation of cost and risk transfer points is CPT's defining characteristic. CPT works for all transport modes. Brosan Logistics provides end-to-end logistics solutions under CPT terms.

'Carriage Paid To' means the seller pays transport costs to the named destination. Quotations use 'CPT [destination]' format, e.g. 'CPT Istanbul Port'. Two critical points exist: the delivery point (risk transfer at carrier handover) and the destination (cost transfer where freight is paid to).

Incoterms 2020 maintained CPT's structure while clarifying security obligations and electronic document equivalence. Unlike CIP, CPT does not require the seller to arrange insurance. ICC strongly recommends buyers arrange comprehensive cargo insurance under CPT.

The seller must: prepare conforming goods, complete export clearance, contract and pay for carriage to the named destination, load goods, provide transport-suitable packaging, notify the buyer, and supply commercial invoices and transport documents.

The buyer handles: import customs clearance, unloading at destination, final delivery, and insurance (optional but strongly recommended). Brosan Logistics manages import clearance, unloading, insurance, and last-mile delivery for CPT shipments.

The seller covers production, packaging, export clearance, and freight to destination. The buyer pays import duties, unloading, insurance, and final delivery. Crucially, the seller pays freight but risk transfers at carrier handover.

CPT's most critical feature: cost and risk transfer at different points. Cost transfers at destination (seller pays freight there). Risk transfers at first carrier handover (usually in origin country). Between these points, goods travel at seller's expense but buyer's risk. Buyers must arrange All-Risks insurance.

CPT offers a balanced structure where the seller handles freight but insurance remains optional. Properly used, it benefits both parties.

CPT: seller pays freight, no insurance. CIP: seller pays freight + insurance. FCA: seller doesn't pay freight. DAP: seller bears all costs and risks to destination. CPT sits between FCA and DAP.

Use CPT when: the seller can negotiate better freight rates; the buyer wants to control import clearance; insurance cost control is preferred by the buyer. Use CIP if insurance coverage is needed; use DAP for door-to-door service.

Example 1: Chemical import from Germany to Turkey under 'CPT Mersin Port'. Seller pays freight to Mersin; risk transfers in Germany. Brosan Logistics handles Turkish import clearance. Example 2: Food export from Turkey to UK under 'CPT London Warehouse'. Seller pays freight to London; buyer handles UK import clearance.

CPT balances seller freight responsibility with buyer risk management. Always specify both risk and cost transfer points clearly. Arrange comprehensive insurance. Contact Brosan Logistics for free CPT consultation.