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Incoterms: Carriage Paid To (CPT)

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  • Incoterms: Carriage Paid To (CPT)
An in depth look at the Incoterm; CPT

What is Carriage Paid To (CPT)?

Carriage Paid To, abbreviated as CPT, is one of the 11 international recognised incoterms. It can be used for any transport mode; land, sea or air and can also be used where there is more than one transport mode.

This ruling means that the seller delivers the goods themselves to the end destination. Either this, or another person nominated by the seller completes the delivery. The named place needs to be fully accurate with a complete address, not just the town or city. This should be determined in advance between the buyer and the seller. Costs are also all paid for by the seller to bring the goods to its destination.

This makes it very straightforward for the buyer in theory; as the shipper is responsible for arranging the transportation to the agreed point, however, there are a couple of points that you should be aware of if choosing to utilise this incoterm.

 

What is not included with the incoterm Carriage Paid To? 

Terminal Handling Charges (THC)

Terminal handling charges will more than likely be payable on goods arriving into a country via air, sea or road. Sometime the seller will not include this service and associated charges when arranging the transportation of goods from one country to another. Therefore, it is the responsibility  of the buyer, to check whether THC have been covered by the seller. If not you could be whacked with an unpleasant surprise.

 

Insurance Cover

The seller has no requirement to provide insurance cover if transporting goods under the incoterm Carriage Paid To. The buyer may wish to purchase their own insurance cover if the risk is deemed sufficiently high. However, you should note that this won’t be referred to within the incoterms ruling and should be specified elsewhere within the specific commercial agreement between the buyer and seller.

 

CPT Overview

  • Carriage Paid To is an international trade term denoting that the seller delivers the goods at their own expense to a carrier or another person nominated by the seller.
  • As soon as the goods are delivered to the carrier, the liability and risk of said goods is transferred over to the buyer.
  • The seller does not need to include terminal handling charges when using this incoterm and there is no requirement for the seller to insure the cargo during transit.

 

If you have any questions regarding the use of “Carriage Paid To (CPT)” or any other incoterm, please feel free to contact our team on 0113 250 1155 or email sales@tudorfreight.com

 

 

 

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Industry Specific Guidance and Logistics Advice

Exhibitions and Events Exhibitions and Events Logistics

When fast reactions and quick solutions are required, you can count on Tudor International Freight to provide a dedicated team and exceptional service to help make your event a resounding success.

Manufacturing Manufacturing Logistics

Tudor International Freight manage the supply chain movements of many large international manufacturing companies. Our team appreciate the complex issues and unique logistical challenges facing this sector.

Oil and Gas Oil and Gas Logistics

We have been providing logistics services to the oil and gas industry for many years. Our specialist team have worked on many projects across the world and understand the demands of this sector more than most.

Aerospace Aerospace Logistics

Tudor International Freight provide a wide range of supply chain solutions to the aerospace sector. Our staff are familiar with industry terms and jargon – we understand and speak your language.

Chemicals Chemical Logistics

The chemical goods industry has experienced significant changes over recent years with a much larger emphasis being placed on logistics compliance and regulation. Tudor provide businesses with specialist chemical logistics advice and guidance.

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