CY/CY Term and its Relation to Ocean Freight Costing

Container shipping has many jargons and abbreviations attached to it. In this article, we will look at one such abbreviation/jargon – CY/CY.

1. CY/CY Term and its Relation
to Ocean Freight Costing

2. Join The Conversation
On Twitter
@XENETA_AS

3. About
Xeneta
Container Freight Pricing
Transparency With One Platform In
Real Time & On Demand.

4. Are You Paying The
Right Container Freight
Rates?
Discover Savings
Potential In Real
Time.
Contact Us.

5. ENS is an acronym for ENtry Summary
Declaration.
ENS is required by EU customs to do a
security assessment of all cargo entering
EU ports
Carriers can use their discretion as to the
quantum of the ENS charge
This term is used ONLY in
container shipping
because CY stands for
Container Yard.
CY/CY

6. A Container Yard is a resting
place within a port or terminal
where full or empty
containers are received and
stored, before it is loaded on
the ship in the case of
exports, or offloaded from the
ship and delivered to the
consignee in the case of
imports.

7. CY/CY means that the responsibility of
the shipping line begins at the CY at the
load port and ends at the CY at the
discharge port.

8. Learn how Xeneta can help
You get insight and intelligence into
your global ocean freight prices and
change your logistics business:
Container Freight Pricing
Transparency With One Platform In
Real Time & On Demand.
Request
Demo Now

9. The process of ocean
shipping can be
broken up into three
phases or legs:

10. A Container Yard is a resting
place within a port or terminal
where full or empty
containers are received and
stored, before it is loaded on
the ship in the case of
exports, or offloaded from the
ship and delivered to the
consignee in the case of
imports.
The first leg (pre-carriage) is before the container is delivered to
the port or terminal.
The second leg (carriage) is the transition from port to port.
Lastly, the third leg (on-carriage) is after the container is picked up
from the subsequent terminal.

11. CY/CY refers to the
second leg (carriage) of
the process of ocean
shipping. If the shipment
is done on the basis of
CY/CY terms, whatever
happens before the CY
at load port remains the
responsibility of the
shipper and whatever
happens after the CY at
the discharge port
remains the
responsibility of the
consignee.

12. In some ports,
export containers
may need to be
offloaded 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.

13. Similarly, on the import side, 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 importer’s truck.
When negotiating freight rates with the shipping line, the BCO or
NVOCC/Freight forwarder must ensure that these terms are
made crystal clear to avoid any ambiguity with the shipping line.

14. CY CY Rates: Different
Combinations
Let us look at the few
combinations that
that may be involved:

15. CY/CY refers to the
second leg (carriage) of
the process of ocean
shipping. If the shipment
is done on the basis of
CY/CY terms, whatever
happens before the CY
at load port remains the
responsibility of the
shipper and whatever
happens after the CY at
the discharge port
remains the
responsibility of the
consignee.
Gate In/Gate Out: In this combination excluding the carriage
charges, the terminal handling charges at both ends are covered
in the total shipping charges and what is excluded is only the
local charges payable to the carriers.
CY/Gate Out: In this combination excluding the carriage charges,
the THC at the discharge port is covered in the total shipping
charges and what is excluded is the local charges payable to the
carriers at both ends and the Origin THC.

16. Gate In/CY: In this combination excluding the carriage charges,
the THC at the load port is covered in the total shipping charges
and what is excluded is the local charges payable to the carriers
at both ends and the Destination THC.
CY/CY: In this combination excluding the the carriage charges,
nothing else is included.
In some ports,
export containers
may need to be
offloaded 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.

17. Each port/terminal/CY has its own
berthing and working schedule for
the various ships that call there. To
achieve operational efficiency, there
has to be some cut-off after which
containers for that specific ship
cannot be accepted.
Why is This Important?

18. There are several shipping terms
and service types floating around in
the world of ocean shipping.
Conclusion