Carriage Paid To
The seller pays carriage to the named destination, but risk passes when the goods are handed to the first carrier. Works for any transport mode.
When to use it
CPT is CFR's equivalent for any transport mode, including multimodal and air, so it is the better choice over CFR whenever the shipment is not a straightforward vessel-to-vessel sea move. Use it when the seller should pay carriage to a named destination but risk should pass earlier, at origin.
The common mistake
Confusing the paid-to destination with the risk-transfer point. The seller's payment obligation runs to the named place; risk passes much earlier, at the first carrier, which surprises buyers who assume paid carriage means the seller is on the hook throughout the journey.
Risk transfers
after Loading onto main carriage, from seller to buyer.
See the full responsibility matrix
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Incoterms is a registered trademark of the International Chamber of Commerce (ICC). This is an educational summary, not the official rules. For the binding text, see the ICC Incoterms 2020 publication.
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