Cargo & Freight
Incoterms series (part 3)
CPT: The seller arranges the main carriage
Incoterms
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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 towards the buyer, and at the other end they fall more with the seller.

So far, we’ve looked at FCA, under which the buyer is responsible for arranging the main carriage, and the risk or loss or damage during transit passes from the seller to the buyer before that carriage commences.

Shifting things slightly towards 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 or loss or damage during transit still passes from the seller to the buyer before that carriage commences, typically at or relatively close to the seller’s premises in the country of origin.

Next week, we’ll look at the CIP term.

Learn more about the Incoterms rules

Visit our Incoterms hub to learn more about the Incoterms rules, their relevance to importers' and exporters' insurance needs, and the appropriate rules used when shipping containerised goods.
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