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Carriage Paid To (CPT) is an Incoterm where the seller pays for the transportation costs of goods to a specified destination, but the risk transfers to the buyer once the goods are handed over to the first carrier.
CPT means the seller is responsible for arranging and paying for the transport of goods to a specific destination. However, the risk associated with the goods is transferred to the buyer once the goods are delivered to the first carrier. This term is often used for both domestic and international shipments.
Carriage Paid To (CPT) works by requiring the seller to pay for transportation to a specified point, but the risk is transferred to the buyer once the goods are handed over to the first carrier. For your business, this means you can manage your transportation costs while knowing exactly when you are liable for the goods.
By understanding CPT, you can better allocate risk and manage logistics costs, ensuring clearer agreements with your trading partners. It also helps streamline the shipping process and enhances cost efficiency for both buyers and sellers.
Buske Logistics is a Top 40 3PL with over 35 warehouses across North America, specializing in warehousing, transportation, and value-added services. We provide tailored logistics solutions serving major Fortune 500 companies.
Carriage Paid To (CPT) is important because it clearly defines the responsibilities between the seller and the buyer in the shipping process. It ensures that the seller covers the cost of delivery to a designated location while also transferring the risk at an early stage, minimizing the seller's liability.
For buyers, understanding CPT helps in knowing when the risk of loss or damage to the goods shifts from the seller to them, which is vital for managing insurance and shipping costs. It also gives buyers clarity on where they need to take responsibility for the shipment, helping to avoid misunderstandings.
