Incoterms 2020
CFR vs CPT
Compare Cost and Freight and Carriage Paid To side by side: who pays freight, where risk transfers, and who clears customs.
| Field | CFR | CPT |
|---|---|---|
| Applies to | Sea and inland waterway only | Any mode, including multimodal |
| Risk transfers to buyer | When the goods are on board the vessel at the origin port. Risk passes at origin even though the seller pays freight to destination. | When the goods are handed to the first carrier. Risk passes early even though the seller pays carriage to destination. |
| Main carriage paid by | Seller | Seller |
| Insurance | No party is obliged to insure. The buyer bears the in-transit risk and should insure. | No party is obliged to insure. The buyer bears the in-transit risk and should insure. |
| Export clearance | Seller | Seller |
| Import clearance and duties | Buyer | Buyer |
| Seller handles | Load the goods and pay ocean freight to the destination port. | Arrange and pay carriage to the named destination, by any mode or multimodal. |
| Buyer handles | Insurance in transit, import clearance, unloading, and delivery. | Insurance in transit, import clearance, unloading, and delivery. |
| Best for | Buyers who want the seller to book freight but want to control insurance. | Air, road, rail, or multimodal shipments where the seller books freight but the buyer insures. |
Fields that differ are highlighted in teal. General guidance only, not legal advice. Your sales contract governs. Based on Incoterms 2020.
CFR vs CPT questions
Pick the right term, then track what it costs
Cargizon tracks every shipment and checks each freight invoice against your rate card, so wrong charges get flagged before you pay. Start free.