What is CY-CY Term in Container Shipping..??

image for 300th blog postWhat is CY-CY Term in Container Shipping..??

This 300th blog post (in case you didn’t notice the big image on the left) is in response to a Question from a reader (Abhishek)..

CY stands for Container Yard.. Container Yard is a place within a port or terminal where containers are stored before it is loaded on the ship in the case of exports or offloaded from the ship in the case of imports..

In some cases in the body of a bill of lading you might have seen a notation CY/CY or in the Port of Loading or Port of Discharge fields in the bill  of lading, you might have seen this added after the name of the port, like so (Durban CY)..

This means that the responsibility of the carrier either begins (in the case of Port of Load) or ends (in the case of Port of Discharge) at the Container Yard..

In some ports, as part of the export process, the container maybe Image for container yard 1received at a point other than the Container Yard and there might be an additional movement involved (with or without cost) to move it to the Container Yard..

Similarly as part of the import process, the container might have to be moved from the Container Yard to a different yard or staging area (with or without cost) before it is loaded on the importers truck..

In such cases, if the notation of CY/CY is present on the bill of lading, the shipper/consignee will be responsible for any movement, costs or risks before the container is delivered to the carrier at the CY or picked up from the CY..

While on the subject of container yard, please have a look at below mind blowing video of automated container yard operations in the Port of Rotterdam..

PS : You might feel a bit antiquated after watching this video.. 🙂 

If you have or know any shipping and freight related videos that you think might be useful to everyone, please do share or let me know the URL (the website address).. Thanks..

What did you think of the above article..?? Comment below..

21 comments on “What is CY-CY Term in Container Shipping..??

  1. owaisi says:

    Dear Mr Manaadiar, could you please tell me why FIO based shipment not acceptable in Saudi Arabia, shipments here are mostly to be on CY/CY terms only.

  2. John Pereira says:

    Great for new starter

  3. Moriss45 says:

    Please am new here who can help me with this question…in CIF term is it the shipper that is responsible for the custom duty payment at the discharge port ? Please i need an answer thanks.

    1. Hello Moriss, CIF rule should be used only for transport by sea or inland water ways transport.. In CIF terms the seller has no obligation to clear the goods for import, or pay any import duty or carry out any import customs formalities.. Trust this helps..

  4. wawang says:

    Hi KAI,
    DDP : delivery duty paid is Door2door shipment. Shipper/Seller have to pay all export and import/duties charges and procedure. Including trucking from POD to Consignee’s door.

    DAP : delivery at place, if the place agreed is Cnee’s door so this shipment similiar to DDP (door2door), BUT Cnee must do customs clearence and duties by him/her self (not by Seller/shipper). and trucking the container from POD will take care by Shipper/Seller.

    CY to Door : assumed from Seller’s CY to Consignee Door. You can chose either DDP or DAP above.

    thank you,

  5. Kai says:

    I’ve noticed that different locations (ie; BWI,SFO etc.) have different definitions of incoterms. Sometimes I get this in an email ” oh the shipment is DAP but treat it like a DDP.” *scratching my head* one office will tell me DAP means door to port, others say prepaid except duties *scratching my head even more* so today I receive an email shipment on it’s way in : CY TO DOOR … so my question is, local charges bill back to origin OR local charges paid by cnee? This term is new for me, and I’m new to the system myself but most shipments come in DDP, DAP, EXW. I don’t want to make assumptions, and I’m learning everything I can, so your help is GREATLY Appreciated.

    1. Hello Kai, recommend you search this site for articles on Incoterms.. There are no different definitions of Incoterms.. All definitions are as per the Incoterms 2010 guide, which you should purchase and go through as there is quite a lot of information to discuss here.. Everything is very clearly discussed in the book..

  6. Edward Teller says:

    That video is incredible. I cannot believe that something so large and complex is actually automated. Have they had any accidents or problems that we know of?

    Edward Teller | http://www.aussiefast.com.au

  7. maan2012 says:

    CY / CY is a LINER TERM used by carrier regarding the handling charges, and means that THC are including in the freight rate. Legal carrier responsibility is determined by governing law (Hamburg Rules, COGSA, HAGUE & VISBY Rules etc).
    FCL is short term of Full Container Loaded / LCL Low Container Loaded means cargo is consolidated

    1. Hi Maan, CY/CY does not mean that the THC’s are included in the freight rate.. THC would be covered if the line quotes basis Liner Out..

  8. Donna says:

    Thanks for that,
    I understand the concept of FCL / LCL
    The definition I have then is inaccurate not to say confusing. I will discard it. Thank you

    1. Moustafa says:

      in CY/CY shipping line have right to collect THC OR THD from shippers or consignees ?

    2. Hi Mohamed, it depends on the ports and also some of the terms of shipping.. In some ports around the world THC or THD is collected directly by the ports and in most cases by the line.. Pls also read http://shippingandfreightresource.com/what-exactly-is-the-liner-out-charge-shipping-lines-are-quoting-this-for-cargo-to-west-africa/

  9. Donna Fistonich says:

    Hi there,

    With regard to your CY/CY blog, would you clarify something please?

    I understand the term description you have given, however, I have been given another definition stating ‘ the CY is the delivery (or receipt) of a whole container from (or at) the shippers or the forwarders (or the c./nees) cargo yard or premises” and it continues ‘ CY/CY broadly means that the whole container received by the carrier is packed at the shippers or the forwarders premises, and the delivery of that same whole container to the c/nees premises’ – this indicates that receipt of FCL is taken at the shippers yard and delivered to the c/nee yard, taking it way beyond the boundaries of the Port container yard.

    Also, if it is noted on a forwarders Housebill does it have the same meaning? as they would likely have responsibility before the Port CY ?

    Does it have a different meaning for a forwarder than for an ocean carrier?

    I hope this is not a silly question. Thank you

    1. Hello Donna, there is no such thing as a silly question here.. We are all here to learn (including me – I learn a lot while answering questions of my readers).. So pls feel free to ask any related questions.. 🙂

      What you are thinking of and mentioning above is FCL/FCL terms that is shown on a bill of lading sometimes.. This is not the same as CY/CY.. FCL/FCL refers to the service type of the container.. You can read about it in my previous article about Container Service Types..

      FCL : Full Container Load – this is when the full container is used by a single customer for his cargo.. FCL containers are usually packed and unpacked by the client at his premises at the origin and destination.. The client takes responsibility, liability for the packing and condition of the cargo packed in the FCL container.. FCL/FCL – One shipper => One consignee..

      Whether FCL/FCL is written on a House Bill or a Master Bill, it has the same connotation.. CY/CY refers to where the responsibility of a carrier begins and ends and FCL/FCL refers to the service type of that particular container..

      Trust this is clear and if you require any further clarification, please do comment here..

    2. Francisco says:

      I have one question. If have a FCL/FCL case, one shipper and one consignee, whyt would I need a House Bill of lading, when this is supossed to be issued in LCL/consolidated cases where there are several shippers and consignees?? Im new at this and I would really like some guidance please 🙂

    3. Hello Francisco, generally House Bills of Lading are issued for FCL/FCL containers when the shipment is controlled by a freight forwarder (either directly or at the request of the client) and that forwarder wants to keep the actual shipper/consignee information from being known to the shipping line or other outside parties..

(Estimated reading time: 2 minutes)
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