Difference between CFR and CPT in shipping terms

The Buyers and Sellers are suggested to use Incoterms 2020, the latest version of delivery terms for movement of goodsClick here to read the extract of Inco Terms 2020, easily explained.


How to differentiate CFR with CPT?


Difference between CFR and CPT in shipping termsWhat are the difference between CPT and CFR?


As per Inco terms of shipping, CPT means Carriage Paid to (named destination mentioned). CFR means, Cost and Freight (up to the destination mentioned).


The detailed articles on CFR and CPT with simple language have been mentioned in this web blog separately. I suggest you to read these articles on CFR and CPT, so as to enable you to have a clear idea on these shipping terms.


What is CPT? What are the responsibilities of buyer and seller under CPT terms? How does CFR term work? What are the obligations of buyer and seller under CFR terms.

The Buyers and Sellers are suggested to use Incoterms 2020, the latest version of delivery terms for movement of goodsClick here to read the extract of Inco Terms 2020, easily explained.


For your immediate reference, I give below web links on CPT and CFR separately below.


CPT terms, a quick reference


What is CFR term in Shipping?



The above articles easily explain about CFR and CPT.


Detailed articles about Inco Terms of Delivery under export and import of International business  have been mentioned in  separate category – INCO TERMS – in this web site.  You can click here to read.

I hope, you have satisfied with the difference between CPT and CFR explained easily. Do you have different thought on difference between CFR and CPT?

 The above information is a part of Online Export Import course 

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Bhatia Jagdish : I am very eager to know difference between CFR and CPT, but even after reading from your above site, I am not clear, in both it seems same meaning. I would like to know key difference. Sir, I would be highly thankful to you if you touch to the key point difference and explain me how one differ from other.

Maryam: I believe CFR & CPT are the same. just CFR is used for ship and CPT for trucks and air cargo.

Hossein Samavati Majd: Dear Maryam CFR and CPT are different in some other ways. For example if you sell CPT Singapore (Importing country) The your risk will transfer to the buyer in Singapore while in CFR the risk is transferred when the merchandise is on-board in the port of loading.

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