Difference between CFR and CPT

CPT and CFR under Inco terms 2020

 Under this post we can discuss about the difference between CFR delivery rules  and CPT delivery rules as per Incoterms 2020 issued by ICC.

CFR means Cost and Freight to a named destination mutually agreed between seller and buyer under contract of carriage incorporated  under their sale contract.   

CPT means,  Carriage Paid To a named destination both seller and buyer contracted .

What  are the differences between CPT AND CFR

One of the main differences between CFR and CPT is that CFR is meant for movement of goods by Sea and Inland waterways only whereas CPT may be used for all modes of transport.  . 

CPT is widely used to move goods from Warehouse to Warehouse, movement of LCL cargo, shipments under break bulk etc. especially to Dry ports and intermediary ports. CPT modes are used widely used for the shipments by air also.    CFR delivery rules are widely used for the movement of goods by sea with destination to a port in buyer’s side.

Under CFR, the seller transfers the risks involved in movement of goods  when goods  gone onboard the vessel.  Under CPT terms, the delivery takes place when goods are handed over to the carrier contracted by seller, where the risks are transferred from seller to buyer. 

Two web posts related to CFR and CPT explaining   both terms in detail in simple language  are available below to read.  You may click below to know easily to understand  both term CPT and CFR:

CFR  Cost and Freight

CPT  Carriage Paid To

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