CPT – The seller arranges the main carriage - Roanoke Insurance Group

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CPT – The seller arranges the main carriage

CPT – The seller arranges the main carriage

The terms of sale can be thought of as sitting on a sliding scale of responsibilities, which are split between buyers and sellers according to the Incoterms Rules. At one end, risk and cost are loaded toward the buyer, and at the other end, they fall more with the seller.

CTP is in some ways similar to FCA, but on the sliding scale, things shift slightly toward the seller. If it is more practical or cost-effective for them to arrange and pay for the main carriage, then CPT may be an appropriate choice. But it is important to note that the risk of loss or damage during transit still passes from the seller to the buyer before that carriage commences. This is typically at or relatively close to the seller’s premises in the country of origin.

This term is suitable for most kinds of goods carried by road, rail, air, sea, or inland waterway (or any combination of these).

The named place is the place to which the main carriage is arranged, but risk transfers from the seller to the buyer when the goods are handed over to the main carrier. This is typically the country of origin and often at or relatively close to the seller’s premises.

Therefore, the named place is different from the risk transfer point.

The main carriage is arranged and paid for by the seller up to the named place.

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