CPT Delivery Terms – Part of Incoterms

CPT is a delivery term which is part of the collection of international trading terms known as Incoterms. In this article you will learn more about what CPT means, what requirements there are on buyers and sellers respectively, and how PostNord can help as a transporter of CPT deliveries.

What does CPT Incoterms mean?

CPT stands for Carriage Paid To (Named destination).

CPT is one of several international terms that are part of Incoterms – meaning the collection of standardized trade terms and shipping rules written by the International Chamber of Commerce (ICC). CPT and other delivery terms in Incoterms aim to simplify domestic and international shipping between companies by defining what party is responsible for costs and risks respectively.

CPT delivery terms for sellers and buyers

CPT Incoterms is similar the terms known as CIP. The difference lies in who is responsible for insuring the goods during transportation. When CPT is in use as shipping terms, the following terms apply:

  • The seller is responsible for arranging and paying for shipping to the agreed destination
  • The buyer accepts the risk from the moment the goods are loaded by the first transporter

Companies that ship products with CPT Incoterms as delivery terms are responsible for the risks associated with the shipment until the first transporter has loaded the goods. From then on, the responsibility is transferred to the receiver, why the receiver must ensure a valid insurance until final delivery.

What are the pros and cons of CPT Incoterms?

Like other terms that are part of Incoterms, CPT has different advantages depending on if your company is acting as the seller or buyer – meaning sender or receiver. In terms of cost, CPT Incoterms is better for the buyer because the seller is responsible for the entirety of the costs of shipping. In terms of risk and insurance, however, CPT puts a higher demand on the buyer. If anything were to happen with the goods during transportation, the buyer’s insurance applies.

More about shipping and logistics

If you want to learn more about shipping and other things related to company logistics, check out our logistics page. Beyond a quick overview you will also find a wealth of articles on the subject.

Use PostNord as a reliable transportation partner for CPT deliveries

PostNord can help you with safe transportation of products, both domestically and internationally – with CPT delivery terms as well as other Incoterms. As the leading provider of modern logistics solutions in the Nordics, we can guarantee safe transportation of your products from start to final destination.

As a company client you can use PostNord Portal Business to take advantage of smart features like Send Parcel, Track Parcel and Integration solutions. These are services designed to simplify and make everything related to shipping and logistics more efficient – regardless of what terms you use for the shipments.

If you don’t yet have an account in the portal you can easily create an account here. It only takes a minute and is completely free.

Frequently asked questions about CPT Incoterms

When can CPT be used as a delivery term?

CPT can be used for domestic and international shipments between companies.

Does CPT mean free delivery?

CPT holds the seller responsible for shipping costs. Therefore, the terms mean that shipping is free for the buyer.

How do I know if CPT shipping terms apply?

This is agreed upon between the buyer and seller before the goods are shipped.

What is the difference between CPT and CIP?

With CIP delivery terms, the seller is responsible for insuring the goods during transportation. CPT makes the buyer responsible for insurance. CIP stands for ”Carriage Insurance Paid to”.