Bill of Lading (B/L) is the most important document in ocean freight. It is issued by the carrier or freight agent to Shipper. The B/L states various details related to the shipment such as Shipper, Consignee and Cargo description. It also contains routing information such as Port of Loading (POL) and Port of Destination (POL).
The B/L also contains terms such as CY/CY, CFS/CFS etc. So what are these terms? In order to understand these terms let’s first understand what CY and CFS means.
In case of international shipping, CY is Container Yard and CFS is Container Freight Station. Container Yard is a place where containers are stored before loading on to the vessel or after unloading from the vessel/ship after it arrives at Port. A Container Yard is primarily used for FCL (Full container load shipment).
Container freight station is majorly used for LCL( Less than container load) shipments. The goods before loading on to the vessel/ship are taken to CFS to be consolidated and after arriving to the port are taken to CFS to be de-consolidated. The goods are also weighted and checked at CFS before loading on the vessel.
- CY/CY – An FCL shipment, where the packed containerised cargo gets picked up at container yard at origin port and would get delivered at destination port Container Yard to the consignee. In this case, the carrier liability starts at CY of origin port and ends at CY destination port. Such shipments are also referred to as FCL/FCL shipments and will have a single Shipper and Consignee.
- CFS/CFS – A shipment, where the goods are delivered at CFS for grouping (consolidating) them together for a specific destination. Usually, this occurs in case of LCL shipment. The goods are delivered at the destination CFS where they are de-consolidated. Such shipment are called LCL/LCL shipments and will have multiple Shippers and multiple consignees.
- CFS/CY – This is usually a buyer consolidation shipment. The cargo is consolidated or grouped together at a CFS at Origin port (LCL). However at the destination, the delivery of the container happens at a Container Yard (FCL). Hence such shipments are also called LCL/FCL shipments and have multiple shippers and single consignee.
- CY/CFS – When cargo is picked up from Container Yard at origin port (FCL) but delivered to a CFS at the destination port (LCL) for de-consolidation, the term mentioned on the B/L is CY/CFS. Such shipments are also referred to as FCL/LCL shipments and will have single shipper and multiple consignees.
One thing to note in all the above examples is that all deliveries are Port to Port. i.e. It is the responsibility of either the Shipper or Consignee to arrange for the Cargo to be sent to Container Yard / Container Freight Station at the origin port and take the delivery from Container Yard / Container Freight station at destination port.
Also in case of consolidation services, carriers will issue a CY/CY Bill of Lading to the consolidator (Freight forwarder), who in turn will issue House Bill of Lading to the Shipper with CFS pickup/delivery.
What’s the difference among these terms??
CY/CY CY/CFS CY/FO CFS/CFS CFS/CY
DOOR/DOOR DOOR/PORT PORT/DOOR FI/FO
For PORT/PORT shipments the carrier will either issue CY or CFS terms depending on whether the cargo is FCL or LCL. So CY/CY CY/CFS are all PORT/PORT shipments. DOOR/DOOR shipments are those where the carrier is responsible for the entire movement from pickup to delivery. FI/FO means Free In and Free Out i.e. shipper is responsible for cost of loading goods where as consignee is responsible for cost of unloading the goods.
IS THERE ANY CONDITION WHEREIN IN CY/CY OR ANY OF THE ABOVE CLAUSES WHEREIN CONSIGNEE AT DESTINATION HAS TO RETURN CONTAINERS AT SPECIFIC CONTAINER YARD OR CFS ASSIGNED BY LINE EVEN THOUGH IF CONSIGNEE HAS ASKED FOR SHIFTING CONTAINERS IN ANOTHER CFS AS PER THEIR REQUIREMENT AND DONE DOCK DESTUFFING.
I.E. CONTAINERS WERE SHIFTED TO COONSIGNEE NOMINATED CFS (SAY ABC)AS THEY HAVE RIGHTS TO DO AS PER NEW CUSTOM REGULATION AT MUNDRA, INDIA (IN OUR CASE) AND DID DOCK DESTUFFING IN THAT CFS ONLY. BUT LINES NOMINATED CFS IS DIFFERENT ONE (SAY XYZ).
IS THERE ANY CLAUSE FROM ABOVE WEHEREIN IT IS MENTIONED THAT CONSIGNEE HAS TO DELIVER THE CONTAINER TO LINES CFS XYZ EVEN AFTER DOCK DESTUFFING AT ABC.
The empty containers must be returned to the Yard/CFS mentioned on the Delivery Order. It is usually the one nominated by the shipping line for destuffing. However, you can request the line to see if the empty can be handed over in the customer nominated CFS/Yard. If the shipping line declines the request, then handover must be done at the CFS/Yard as per delivery order.
As forwarder, We picked up LCL cargo from different supplier & Stuffed at CFS into 1X20ST container & then move to destination port for example Busan Korea. what term we can use for this shipment
In this case forwarders responsivity start from supplier door to Port
what is exact term we use in this case
In this case, you will release HBL for supplier as CFS/CFS and get MBL from carrier as CY/CY.
which law governs the CY/CY terms?
The last para of this blogpost states, “Also in case of consolidation services, carriers will issue a CY/CY Bill of Lading to the consolidator ….”. Shouldn’t it be CFS/CFS (or CFS/CY if it’s multiple seller/single buyer scenario) instead, because the consolidation takes place only at a CFS (multiple sellers) from where the shipping line takes charge of the container?
If I am wrong, kindly explain why. Will appreciate your clarification.
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Once my LCL is finished from CFS will my shipper contract with a trucking co. to bring it to a warehouse for me to pick up?