What are Incoterms?

Before explaining each individual Incoterm, we first need to get to grips with what Incoterms actually are. Simply put, ‘Incoterms’ are International Commercial Terms, 11 rules for the purpose of making who is responsible for what during an international transaction crystal clear. Accepted globally and becoming a requirement in international trade, they take out the risk of a “lost in translation” misunderstanding and in 3 simple letters (bar the odd caveat) it pinpoints exactly where the burden of responsibility lies and transfers from buyer to seller regarding the costs, jobs and risks involved. It leaves little to no room for confusion and every party involved knows exactly where they stand.

Today we look at CPT



CPT – Carriage Paid To

CPT puts the responsibility on the seller to get the goods to the buyer’s carrier at an agreed location and also clear the goods for export. Once handed over to the carrier, the seller’s responsibility of the goods ends and transfers to the buyer. The key difference is that the seller also covers the costs of freight to the named destination (that may be the port of destination or the buyer’s facilities, but this must be clearly agreed prior)

Transfer of risk 

When the goods have been handed over to the carrier.


Want to learn more about INCOTERMS right away? then check out our Logitics Encyclopedia!

“I love what I see, help me transport cargo!”

“I love what I see, help me transport cargo!”