Definition
The seller pays carriage to the named destination, but risk passes when goods reach the first carrier.
CPT is the multimodal counterpart of CFR: the seller contracts and pays for carriage to the agreed destination, while risk transfers to the buyer as soon as the goods are handed to the first carrier — often far from the destination named in the contract.
Because cost and risk split at different points, buyers should understand they own the in-transit risk despite the seller paying the freight. CPT suits any mode or combination of modes.
Related terms
CIP (Carriage and Insurance Paid To)
Like CPT, but the seller also buys all-risks insurance to the named destination for the buyer.
CFR (Cost and Freight)
The seller pays ocean freight to the destination port, but risk passes to the buyer once goods are on board.
FCA (Free Carrier)
The seller delivers, cleared for export, to a carrier nominated by the buyer at a named place.
Multimodal Transport
Carriage using two or more transport modes under a single contract and one responsible operator.
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