What is CPT Incoterm?
Under CPT, the seller agrees to arrange, pay for, and deliver the goods to a specified destination. CPT Incoterm does not include insurance. However, the risk of loss or damage transfers from the seller to the buyer once the goods are handed over to the first carrier.
Is CPT a good Incoterm for my Shipment?
Under CPT, risk transfers to the buyer as soon as the goods are handed over to the first carrier, even though the seller covers transportation costs up to the named place. This means the buyer assumes responsibility for the goods during transit, even before receiving them. You also have limited control over the transportation options, as the seller arranges them.
This could lead to potentially higher costs and higher risk.