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Supply Chain Management Professional (SCMP) · Question

According to the INCOTERMS 2020 rules, under which term is the seller responsible for arranging and paying for the main carriage, but not for insuring the goods?

Under CPT, the seller pays for carriage to the named destination but is not obligated to obtain insurance against loss or damage during carriage.

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Question: According to the INCOTERMS 2020 rules, under which term is the seller responsible for arranging and paying for the main carriage, but not for insuring the goods?

Answer options:

  • FCA (Free Carrier)
  • CIP (Carriage and Insurance Paid to) ✅ CPT (Carriage Paid To)
  • DAP (Delivered at Place)

Correct answer: CPT (Carriage Paid To)

Explanation: Under CPT, the seller pays for carriage to the named destination but is not obligated to obtain insurance against loss or damage during carriage.

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