Why does CPT matter?
CPT simplifies multimodal international shipments by placing freight responsibility on the seller while allowing buyers to control insurance and costs beyond the named destination. CPT is ideal for complex, cross-border supply chains where freight arrangements are better handled by the exporting party. Buyers benefit from predictable freight costs while maintaining insurance control. CPT is increasingly used as global supply chains become more complex and goods move via multiple transport modes.
How does CPT work in logistics?
A buyer purchases goods from a seller under CPT terms to a named destination (e.g., “CPT Berlin”). The seller arranges and pays for all transportation—truck to port, sea freight, final truck delivery—to get goods to Berlin. Once goods are handed to the first carrier (truck driver at pickup), risk transfers to the buyer, though the buyer must arrange their own insurance. The seller provides delivery documentation; the buyer receives goods at the destination and pays any duties or additional costs.
Transport modes and operations using CPT
- Multimodal shipments
- Air freight with ground handling
- Rail freight with customs clearance
- Inland waterway plus road transport
- Cross-border European logistics
- Door-to-door delivery services
- Complex international supply chains
- Express multimodal services
- Consolidated freight forwarding
- Manufacturing supply chains
Example in practice
A furniture manufacturer in Poznań, Poland sells sofas worth €60,000 to a retailer in Barcelona, Spain under CPT terms to Barcelona (final destination). The Polish seller arranges: (1) truck pickup from Poznań factory to Hamburg port (€2,000), (2) sea freight from Hamburg to Barcelona port (€3,500), (3) truck delivery from Barcelona port to retailer’s warehouse (€1,200). Total freight cost: €6,700 paid by the seller. The buyer arranges cargo insurance (€800). Once the truck departs Poznań with sofas, risk transfers to the Barcelona buyer. If damage occurs during any leg of the journey, the buyer’s insurance covers the loss. The Barcelona retailer receives sofas at their warehouse ready for display in stores. Total cost to buyer: €60,000 (goods) + €6,700 (freight paid by seller, included in price) + €800 (insurance) = €67,500 total.