International shipping doesn’t have to be confusing. Thanks to Incoterms—globally accepted trade rules—you can clearly define who does what in a transaction. One term that offers a flexible solution for many types of shipments is CPT (Carriage Paid To).

If you’re a buyer or seller dealing with air, road, rail, or containerized sea freight, CPT can streamline your shipping process while keeping roles well defined.

Let’s dive into how it works.

What Does CPT Mean?

CPT (Carriage Paid To) means the seller pays for transporting the goods to a named destination, but risk transfers to the buyer once the goods are handed over to the first carrier.

This Incoterm is versatile—it works across all modes of transport and is often used for containerized cargo.

In short:

• Seller pays for carriage (freight) 

• Buyer assumes risk from the first carrier onward 

• Insurance is not included—that’s the buyer’s choice 

Key Responsibilities Under CPT

Here’s how CPT duties are split:

Seller’s Responsibilities:

• Pack and prepare goods 

• Export documentation and customs clearance 

• Deliver goods to the carrier 

• Pay for freight to the destination location 

Buyer’s Responsibilities: 

• Assume risk after goods are handed to the first carrier 

• Handle import duties, customs, and final delivery 

• Arrange insurance (if desired) 

CPT allows the seller to control shipping costs, while the buyer manages post-dispatch risk.

When Should You Use CPT?

CPT is ideal when:

• The seller has better freight contracts or carrier access 

• The goods are shipped via container, rail, road, or air 

• The buyer wants to limit responsibility for origin logistics

It’s commonly used in cross-border e-commerce, container shipping, and consolidated freight where multimodal transport is involved.

Pros and Cons of CPT

Here’s a balanced look:

Advantages for Buyers:  

• No need to arrange international freight 

• Predictable landed cost from the seller’s quote 

• Suits multi-carrier or multi-country routes 

Challenges for Buyers: 

• Risk begins before goods reach the destination 

• Must manage insurance and final delivery 

• Potential confusion about risk if not clearly documented 

Common Misconceptions About CPT

“Seller is responsible until goods reach the buyer.”

→ Not true. The seller pays to transport, but risk shifts at the point of delivery to the first carrier.

“CPT includes insurance.”

→ No. CPT does not include insurance. For insurance coverage, use CIP (Carriage and Insurance Paid To).

“CPT is only for container shipping.”

→ CPT works across all modes—road, rail, air, and sea (especially containerized freight).

How CPT Compares to Other Incoterms

How SailOn Logistics Simplifies CPT Shipments

At SailOn Logistics, we make CPT shipments smoother by bridging the gap between seller and buyer expectations. We help ensure both parties know exactly when risk transfers and how to keep goods secure en route.

Here’s how we assist:

• Support for selecting trusted carriers for the first leg of shipping 

• Clear documentation to define risk transfer and delivery terms 

• Freight booking across air, rail, road, and sea 

• Real-time tracking across all legs of transport 

• Optional insurance and risk mitigation plans 

We ensure CPT agreements work as intended—so both buyers and sellers benefit from cost-effective, coordinated delivery.

Final Thoughts

CPT strikes a balance—the seller pays the freight, but the buyer takes on the risk early. It’s flexible, multimodal, and great for containerized cargo. But both parties must be clear on who handles what and when.

Confused about when to use CPT vs CIP or FOB? Reach out to SailOn Logistics—we specialize in making Incoterms work for your business.

Contact us today and get end-to-end logistics support for global trade made easy.