CPT— Carriage Paid To(Cước trả tới)

Delivery & risk transfer

Where several carriers are involved (for example a pickup truck followed by a vessel or aircraft), risk passes on handover to the first carrier, usually still in the export country, unless the contract names a later point. The parties should state both the delivery point (where risk passes) and the destination (to which freight is paid).

Cost split

The seller pays through to the named destination: export clearance plus the through freight it contracted. Unloading at destination follows the seller's carriage contract: if it is included in the freight, the seller bears it. The buyer pays insurance (if any), import clearance and anything beyond the destination.

Insurance

Neither party is obliged to insure. Whichever party bears the transit risk should consider buying cover for that leg.

Watch out for

• The same trap as CFR: paying freight to destination does not mean bearing risk to destination. Damage in transit is at the buyer's risk from the handover to the first carrier.
• The buyer should consider insuring the whole journey itself, or use CIP so that the seller must provide the highest cover (Clauses A).