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.

 

In the world of global shipping, clarity is everything. From who arranges transport to who covers which costs, Incoterms—or International Commercial Terms—are the rules that keep everyone on the same page. One of the most widely misunderstood but frequently used Incoterms is EXW (Ex Works).

Whether you’re just stepping into international trade or expanding your supply chain globally, understanding EXW can save you time, money, and unnecessary confusion.

Let’s break it down.

What Does EXW Mean?

EXW (Ex Works) is an Incoterm where the buyer assumes almost all responsibility for the goods—right from pickup at the seller’s location. This could be a factory, warehouse, or any other agreed-upon place.

Under EXW, the seller’s only obligation is to make the goods available at their premises. Ever

ything that follows—from loading, transportation, and customs clearance to delivery and insurance—is the buyer’s responsibility.

Key Responsibilities Under EXW

To make it clearer, here’s how tasks are split under an EXW agreement:

Seller’s Responsibilities: 

• Pack and prepare goods for export
• Make goods available at the specified location (e.g., warehouse, factory)

Buyer’s Responsibilities: 

• Handle loading at seller’s premises
• Arrange for inland transport to port
• Manage export customs clearance (unless otherwise agreed)
• Book and pay for international shipping
• Cover import duties and customs at the destination
• Arrange final delivery to the destination

In short: The buyer does most of the heavy lifting.

When Should You Use EXW?

EXW works best when buyers want full control over the shipping and logistics process and are equipped to handle local regulations and pickup logistics in the seller’s country.

Here’s when EXW makes sense:

• You’re working with a freight forwarder like SailOn Logistics who can manage end-to-end transportation
• You’re shipping from a country where you already have local agents or partners
• You want transparency and control over costs from origin to destination

Pros and Cons of EXW

Let’s weigh the benefits and challenges:

Advantages for Buyers: 

• Full control over logistics and costs
• Choose your own freight providers and routes
• Flexible for large-volume or multi-vendor sourcing

Challenges for Buyers: 

• Must manage loading, documentation, and export clearance
• Complex in countries with strict export laws
• Risk of delays if seller refuses assistance beyond EXW terms

Common Misconceptions About EXW

1. “EXW is always the cheapest option.”
   → While sellers offer lower quotes under EXW, buyers often incur higher overall costs due to additional responsibilities like export paperwork and transportation.
2. “The seller helps with loading.”
   → Technically, under EXW, loading the goods is the buyer’s job. Any help from the seller should be pre-agreed and documented.
3. “EXW works for air, sea, and road shipping.”
   → True! Unlike some Incoterms meant only for sea freight (like FOB), EXW is flexible across all transport modes.

How EXW Compares to Other Incoterms

How SailOn Logistics Helps Simplify EXW Shipments

EXW gives you control, but that control comes with complexity. That’s where a reliable freight forwarder like SailOn Logistics becomes your greatest asset.

Here’s how we help:

• On-ground pickup coordination from seller’s premises, even in foreign countries
• Export documentation and clearance managed seamlessly
• Multi-modal transport solutions (FCL, LCL, air, door-to-door)
• Real-time updates so you’re never in the dark
• Cargo insurance and risk management options

With SailOn, you can enjoy the flexibility of EXW without the stress of managing every moving part yourself.

Final Thoughts

EXW might sound simple on paper, but in practice, it requires logistics know-how, reliable partners, and a clear plan. It offers buyers unmatched control over the shipping process—but only if they’re prepared to manage the responsibilities.

Need help navigating EXW or comparing it to other Incoterms? Whether you’re importing, exporting, or building a resilient global supply chain, SailOn Logistics is here to simplify it all.

Contact SailOn Logistics today to get expert support on EXW and all your international shipping needs. Let’s make global trade easier—together.