What is the main difference between CPT and FOB?

They split 1 cost block differently. main carriage (freight) falls to the seller under CPT and the buyer under FOB.

Where does risk pass under CPT?

When the goods are handed to the first carrier — not at the destination the seller is paying to reach.

Where does risk pass under FOB?

When the goods are loaded on board the ship.

Can CPT and FOB both be used for container shipments?

CPT works for any mode of transport. FOB is written for sea and inland waterway transport only.

CPT vs FOB: who pays what

CPT is Carriage Paid To. FOB is Free On Board. Incoterms 2020.

The difference that matters

Main carriage (freight):CPTSeller·FOBBuyer

Full cost split

Cost block	CPT	FOB
Export clearance	Seller	Seller
Carriage to port / terminal	Seller	Seller
Loading onto main carriage	Seller	Seller
Main carriage (freight)	Seller	Buyer
Insurance	Neither obliged	Neither obliged
Unloading at destination	Buyer	Buyer
Import clearance	Buyer	Buyer
Duties and import taxes	Buyer	Buyer
Risk passes	When the goods are handed to the first carrier — not at the destination the seller is paying to reach.	When the goods are loaded on board the ship.
Transport mode	Any mode	Sea / inland waterway

What people get wrong

CPT

With two carriers, risk passes at the first one. A seller shipping by truck then sea has already transferred risk at the truck.

FOB

Routinely misused for containers. A container is handed over at a terminal days before loading, so the seller keeps risk they think they have shed.

Questions

What is the main difference between CPT and FOB?: They split 1 cost block differently. main carriage (freight) falls to the seller under CPT and the buyer under FOB.
Where does risk pass under CPT?: When the goods are handed to the first carrier — not at the destination the seller is paying to reach.
Where does risk pass under FOB?: When the goods are loaded on board the ship.
Can CPT and FOB both be used for container shipments?: CPT works for any mode of transport. FOB is written for sea and inland waterway transport only.

Whichever term you agree, the paperwork has to say so

The Incoterm and named place belong on the commercial invoice, the packing list and the shipper's instructions — spelled the same way on each. ovrseas generates the set from one entry so they cannot disagree with each other.

Commercial invoice template

Compare other pairs

CFR vs CPT CFR vs FOB CIF vs CPT CIF vs FOB CIP vs CPT CIP vs FOB CPT vs DAP CPT vs DDP

Incoterms® is a registered trademark of the International Chamber of Commerce. This page is an independent summary of how costs and risk are allocated and is not affiliated with or endorsed by ICC. For contract drafting, use the official Incoterms® 2020 rules published by ICC.