Carriage Paid To
Seller pays carriage to destination, but risk transfers at first carrier. Like CFR but for any transport mode.
When goods handed to first carrier
Buyer's responsibility (critical - risk transfers early at first carrier)
Fresh green beans and mangetout
Kenyan horticultural exporters have competitive air freight contracts. CPT allows seller to offer a landed cost without insurance obligation.
CIP London to include all-risks insurance
Organic cotton T-shirts
Malagasy garment exporters use CPT for air freight where they have negotiated rates with carriers.
FCA Antananarivo Airport if buyer arranges freight
Used for air freight exports where sellers have negotiated carrier rates. Common for perishable goods (vegetables, flowers) going from East Africa to Europe. Also used for multimodal intra-African trade where road + rail segments are involved.
The Mistake: Buyer thinks risk transfers at destination because seller pays for carriage to destination.
The Problem: Like CFR, risk transfers at the FIRST carrier - not at destination. If goods are damaged in transit, buyer bears the loss.
The Solution: Buyer must arrange cargo insurance from origin. If unsure, use CIP which includes all-risks insurance.
