Under CPT, the seller is responsible for paying the freight costs to the named destination, but the risk of loss or damage to the goods transfers to the buyer once the goods are loaded on board the ship or aircraft. This means that the buyer is responsible for any damage that occurs during transit.
Under CFR, the seller is only responsible for paying the freight costs to the named port of destination. The risk of loss or damage to the goods transfers to the buyer once the goods are loaded on board the ship or aircraft, but the buyer is also responsible for unloading the goods at the destination port.
Therefore, CPT offers more protection for the buyer than CFR, as the seller is responsible for a wider range of costs and risks. However, CPT is also typically more expensive than CFR, as the seller will factor the cost of insurance into their price.
Ultimately, the best Incoterms rule for a buyer depends on the specific circumstances of the transaction, such as the value of the goods, the distance between the seller and buyer, and the level of risk that the buyer is willing to take.
