CPT-Carriage Paid To

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CPT or Carriage Paid To, is one of the trade terms, which condition seller arrange the carriage. On other word, seller pay the transportation. The transportation should seller pay is from seller's warehouse until port destination. Regarding the insurance, buyer will arrange and pay the cost.

Buyers who place order in Indonesia, basically they always take FOB trade term. If the cargo readiness couldn't meets buyer requested, shipper will ask for extend shipment date, if it's really deadline, buyer will ask shipper to air the goods by prepaid. Means, shipper should pays the freight cost.

Buyers form Europe, such as France, determine the forwarder for collect or prepaid, called nominated forwarder. So that shipper and seller couldn't find out the forwarder the best, for their shipment. This condition is not good for seller because seller couldn't be freely to choose a forwarder who has a low freight rate, of course then, the freight charge or transportation will be high than expectation.

CPT is most commonly used in shipment by air. On the HAWB marked freight Prepaid.

Changing FOB to CPT like a monster for seller. Many companies couldn't survived forward or kept stand exists because of many shipment were changed from collect to prepaid, especially for a company who had a product heavy enough, such as shoes.

So that keep your production rush to meet buyer requirement in product and productivity. Avoid CPT or prepaid.