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International trade is not only about moving products across borders; it also requires a precise allocation of costs, responsibilities, and obligations down to the smallest detail. One of the most important tools regulating this complex structure is the Incoterms 2020 rules.
Among these rules, CPT (Carriage Paid To) stands out as a delivery term, especially in export processes that involve multiple modes of transportation. For Hasçelik, CPT is more than just a logistics term; it is one of the most practical ways to manage the journey of steel products safely, swiftly, and with predictable costs.
Under CPT, the seller delivers the goods to a reliable carrier and covers the transportation costs. However, once the goods are handed over to the carrier, the risk and responsibility shift to the buyer.
In other words, the seller organizes the transport and pays the freight costs to ensure that the products reach the destination. But after delivery to the carrier, any further risk or responsibility falls on the buyer.
Example: Hasçelik initiates the process by securely delivering steel products, especially those sent to the Balkans or overseas, to the carrier. From the delivery point onward, any potential risks are transferred to the buyer.
This system not only ensures that costs and responsibilities are clearly defined but also contributes to a more organized and predictable trade process.
For companies like Hasçelik, which conduct extensive road shipments to Balkan countries (e.g., Romania, Bulgaria), CPT offers several key advantages. This delivery term clarifies both costs and responsibilities, making logistics processes more manageable and predictable.
Key Advantages of CPT:
Time and Cost Efficiency: Road transport offers a faster and more flexible delivery process compared to sea freight. For shipments to nearby regions, the seller covering transport costs under CPT provides significant time and logistics cost advantages for the buyer.
Predictable Cost Planning: With the seller paying transportation fees, buyers can manage their budgets without encountering unexpected costs. This transparency strengthens the foundation of business collaboration.
Insurance Control: Under CPT, insurance responsibility is transferred to the buyer. This allows the buyer to choose insurance options that best suit their risk management policies and needs, offering flexibility and giving the buyer more control over the process.
In short, CPT provides control and flexibility, which is highly advantageous for buyers.
Departure: Goods Ready
Products are carefully prepared and made ready for shipment. This is the first and most critical step of the journey.
Meeting with the Carrier: Handover of Responsibility
The logistics team identifies a reliable carrier. At this point, the goods are delivered, and the subsequent process comes under the buyer’s coordination. The transportation costs are handled by the seller, making the process predictable.
Shipment Planning: Costs Managed by Seller
The seller covers all transportation costs and ensures the product reaches the designated destination. This makes the process organized and predictable for both seller and buyer.
Arrival at Destination: Buyer Takes Over
Once the goods arrive at the destination, the buyer has the opportunity to manage the process and monitor the condition of the products. This is a crucial step where post-delivery control passes to the buyer.
Insurance and Security: At Buyer’s Discretion
The decision to insure the goods for additional protection during transport is entirely up to the buyer. This allows the buyer to manage the security aspect of the process according to their preferences.
Seller Responsibilities:
Deliver the goods to the carrier.
Cover all transportation costs required for shipment.
Handle export customs procedures and prepare necessary documentation.
Ensure that the goods are safely sent on their way to the destination.
Buyer Responsibilities:
Take over responsibility for the goods after delivery to the carrier.
Handle import customs procedures, taxes, duties, and optional insurance.
CPT is a highly practical delivery term for logistics-active companies like Hasçelik. Hasçelik particularly utilizes CPT for road transport shipments to multiple countries.
For customers in Balkan countries, especially Romania and Bulgaria, CPT is the most preferred delivery term. Unlike sea transport, which involves longer and more complex processes, road transport with CPT offers speed and flexibility.
For Hasçelik, CPT is one of the best ways to deliver products directly and quickly to the customer. By including transportation costs in the freight price, CPT prevents additional costs for the buyer, offering a clear and predictable cost structure.
In short, CPT accelerates the journey of steel products and strengthens the trust bridge between Hasçelik and its customers.
CPT pricing provides a transparent and understandable structure, especially for companies using road transport. In this method, the price includes all transportation costs up to the destination.
Key Factors Influencing CPT Pricing:
Weight and Volume of Goods: The weight and volume determine the type of vehicle required and directly affect transportation costs. This is the fundamental step in calculating freight.
Distance: The distance from the loading point to the destination is a major component of pricing. As distance increases, fuel and operational costs increase proportionally.
Market Conditions: Variable costs, such as fuel price fluctuations, tolls, or seasonal demand surges, may influence freight rates. CPT pricing can therefore show flexibility based on market conditions.
