A practical guide to CPT shipping — including seller and buyer responsibilities, carriage costs, risk transfer, CPT vs CIP and CFR, multimodal transport, and shipping from China.
SEE CPT RESPONSIBILITIESUnder CPT (Carriage Paid To), the seller delivers the goods to the carrier or another person nominated by the seller at the agreed place of delivery and pays the cost of carriage to the named place of destination.
The key point is that cost and risk separate. The seller pays transportation to the named destination, but risk transfers to the buyer when the goods are delivered to the carrier at the agreed delivery point.
The seller contracts and pays transport to the named place of destination.
Risk transfers when the seller delivers the goods to the carrier at the agreed delivery point.
CPT does not require the seller to obtain cargo insurance for the buyer.
CPT places main-carriage cost with the seller while transferring transport risk to the buyer at the earlier delivery point.
CPT often mentions two different locations. They should not be confused because they serve different purposes.
This is where the seller hands the goods to the carrier and completes delivery under CPT.
EXAMPLE: FCA-style handover at a Shenzhen terminal or airport cargo facility.This is the place to which the seller contracts and pays the transportation cost.
EXAMPLE: Los Angeles terminal, Chicago airport or another named destination point.CPT is a “C” rule: the seller pays carriage beyond the point where the seller's risk has already ended.
That split is the central CPT concept and is why the place of delivery and named place of destination should both be identified carefully.
| COST / TASK | SELLER | BUYER |
|---|---|---|
| Goods & export packaging | YES | — |
| Export customs clearance | YES | — |
| Delivery to carrier | YES | — |
| Carriage to named destination | YES | — |
| Cargo insurance | Not required by CPT | Optional / Buyer choice |
| Import customs clearance | — | YES |
| Import duties & taxes | — | YES |
| Onward transport after paid destination | — | YES |
CPT and CIP use the same basic delivery and risk-transfer structure. The main difference is insurance.
Seller pays carriage to the named destination, but has no Incoterms® obligation to obtain cargo insurance.
INSURANCENOT REQUIREDSeller pays carriage and also obtains the insurance required by the CIP rule.
INSURANCESELLER ARRANGES REQUIRED COVERCPT and CFR both involve seller-paid main carriage and early risk transfer, but they use different delivery points and transport scopes.
Risk transfers when goods are delivered to the carrier.
USEFUL FOR CONTAINERS, AIR, ROAD, RAIL & MULTIMODALRisk transfers when goods are on board the vessel at the port of shipment.
USE ONLY WHEN ON-BOARD DELIVERY FITS THE TRANSACTIONBoth can involve seller-arranged transportation to destination, but the risk-transfer point is very different.
Seller pays carriage to destination, but buyer bears risk during the main journey.
Seller bears risk until goods reach the named destination ready for unloading.
Container cargo often changes custody before the vessel is loaded. CPT can match that real-world handover because delivery can occur when the goods are transferred to the carrier at a terminal, depot, airport or other agreed point.
The seller can still pay the main carriage to the destination even though risk has already transferred at the earlier carrier handover.
CPT can work well when a Chinese supplier arranges the main freight but the buyer accepts transport risk once the cargo is delivered to the carrier.
Goods and export packaging are prepared.
Seller completes China export formalities.
Risk transfers to the buyer at the agreed point.
Sea, air or multimodal freight continues to destination.
Buyer may arrange insurance separately.
Buyer handles import and onward movement.
CPT does not require the seller to obtain cargo insurance. Because risk transfers to the buyer when the goods are delivered to the carrier, the buyer should consider whether separate cargo insurance is appropriate for the main journey.
If seller-arranged insurance is desired as part of the Incoterm structure, CIP may be more suitable.
State the named destination precisely, and also identify the agreed delivery point where the seller hands the goods to the carrier and risk transfers.
The Chinese supplier completes export clearance and delivers the cargo to the agreed carrier at the Shenzhen air cargo terminal. Risk transfers to the buyer at that point.
The supplier still pays the agreed air carriage to Los Angeles. The buyer handles cargo insurance if desired, U.S. import clearance, duties, taxes and onward delivery.
RISK TRANSFERS IN SHENZHEN — SELLER STILL PAYS TO LOS ANGELES.Exact documentation depends on cargo, mode, route and regulatory requirements.
CPT means Carriage Paid To. The seller delivers the goods to the carrier and pays carriage to the named destination.
Risk transfers when the goods are delivered to the carrier at the agreed place of delivery, even though the seller pays transportation to the named destination.
The seller contracts and pays the carriage to the named place of destination.
No. CPT does not require the seller to obtain cargo insurance. The buyer may arrange insurance separately.
Yes. CPT can be used for any mode or combination of modes, including air freight and multimodal transportation.
Both use seller-paid carriage and the same basic early risk-transfer structure. CIP additionally requires seller-arranged cargo insurance.
CPT can be used for any mode and transfers risk when goods are delivered to the carrier. CFR is sea / inland-waterway only and transfers risk when goods are on board the vessel.
Yes. CPT can be well suited to containerized and multimodal cargo delivered to a carrier or terminal before vessel loading.
Send us the supplier location, carrier handover point, named CPT destination, cargo details and final delivery address. We can review the route and compare alternative freight structures.
GET A FREE QUOTEThis page is a general educational summary and is not the official ICC Incoterms® 2020 text or legal, insurance, tax or customs advice. The agreed delivery point, named destination, transport contract and sales contract matter. Refer to the official ICC rules when incorporating CPT into a contract.
ChengYu Ship can help compare CPT with FCA, CIP, CFR and destination-based shipping options for your route.
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