Certified Supply Chain Professional (CSCP) Practice Exam

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What does the acronym 'CPT' refer to in shipping terms?

Cost, Price, and Terms
Cost, Payment, and Transfer
Carriage Paid To
Credit Payment Terms

The correct answer is: Carriage Paid To

The acronym 'CPT' stands for "Carriage Paid To." This term is important in international trade and logistics as it specifies the responsibilities of the seller and buyer regarding transportation costs. Under CPT, the seller pays for the transportation of goods to a designated destination. This means that while the seller covers the freight costs, the risk of loss or damage to the goods passes to the buyer once the goods have been handed over to the carrier. Understanding CPT is crucial for parties involved in shipping contracts because it clarifies at what point responsibility shifts from the seller to the buyer, thereby influencing cost management and liability during transit. The other options do not accurately represent what 'CPT' means in shipping contexts, focusing instead on unrelated financial or pricing terms that do not pertain to the specific responsibilities outlined in the shipping terminology.