Transportation Operations LINCS Practice Exam

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What does "CPT" stand for in transportation terms?

Carriage Paid To
Cost Per Ton
Customs Processing Time
Commercial Passenger Transport

The correct answer is: Carriage Paid To

In transportation terminology, "CPT" stands for "Carriage Paid To." This term is used in international freight shipping and is one of the Incoterms defined by the International Chamber of Commerce. When the seller agrees to deliver the goods and cover the cost of carriage to a specified destination, this is designated as CPT. It means that the seller is responsible for transporting the goods to the agreed location while also covering the freight charges. This creates clarity regarding the responsibility for cost allocation in the shipping process, which is crucial for both the buyer and the seller. The other terms do not appropriately fit the context of this question related to shipping and transportation logistics. Cost Per Ton often relates to pricing in transportation but does not describe a shipping arrangement. Customs Processing Time pertains to the duration required for customs clearance, which is not a transport term. Commercial Passenger Transport, while a relevant concept, does not align with the definition of CPT in international freight shipping.