What is the difference between CPT and Incoterm?

While CPT has its disadvantages, the Incoterm works rather well when transporting the cargo overland from one place to another. For example, in cross-border trade, where the seller organizes the shipment for their carrier to transport the goods across multiple countries, this Incoterm works surprisingly well for that specific situation.

What does CPT mean in shipping terms?

CPT or Carriage Paid To is an incoterm definition used to explain that the cost of the goods includes everything required to bring the products to the agreed destination. The buyer is only responsible for import requirements and local delivery and unloading charges.

What is the CPT rule Under Incoterms 2020?

The CPT rule under Incoterms 2020 has two important places, the place of delivery in the seller’s country and the destination to where the seller contracts the carriage. It is vital not to confuse the two. Despite being recommended in place of the CFR Incoterm for cross-ocean container shipments, in practice, CPT is largely unworkable for them.