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Updated Aug 2026

What Is CY Shipping? (2026 Guide): CY/CY, CY/CFS & Container Yard Logistics

Master CY shipping in ocean logistics. Compare CY/CY vs CY/CFS terms, calculate container yard dwell fees, avoid CY cutoff delays, and optimize FCL freight.

Market guidance updated 2026 · Incoterms® 2020 (ICC)

By Lotus Liu·Editor, Super International Shipping·

Market context

The Role of the Container Yard (CY) in Global Trade

In international seaborne logistics, over 140 million full container loads (FCL) move through ocean ports annually. Central to this physical movement is the Container Yard (CY)—a dedicated port facility where ocean containers are staged, marshaled, and transferred between inland drayage trucks, intermodal rail cars, and gantry cranes servicing container ships.

When reviewing ocean shipping contracts or a Master Bill of Lading (MBL), the abbreviation CY appears frequently alongside terms like CY/CY or CY/CFS. Misinterpreting container yard handoff points, failing to meet rigid CY Cutoff deadlines, or mismanaging container dwell times leads directly to missed vessel sailings, container rolling, and port demurrage charges averaging $200 to $500 USD per container per day.

Definition

What Is CY Shipping? Container Yard Mechanics & B/L Disambiguation

The term CY Shipping has two distinct operational meanings depending on whether it is used to describe a physical port facility or a legal contract term on a Bill of Lading.

1. Physical Port Facility (The Container Yard)

A secure, paved customs-controlled area inside or adjacent to a marine container terminal used to stack FCL containers.

2. Contractual Handoff Term (CY/CY on Bill of Lading)

Defines the precise geographic points where ocean carrier custody begins (Origin CY Gate-In) and ends (Destination CY Gate-Out).

Container Yard (CY)

Handles Full Container Loads (FCL) exclusively. Containers enter and leave the CY fully packed and sealed; individual cartons are never opened or handled inside the yard.

Container Freight Station (CFS)

A specialized warehouse facility where Less-than-Container Load (LCL) cargo is consolidated (stuffed) into shared containers at origin or deconsolidated (devanned) at destination.

Inland Container Depot (ICD)

An off-dock dry port located inland that functions as an extension of the maritime CY, offering customs clearance and container staging away from coastal port gates.

Handoff combinations

The 4 Ocean Freight Handoff Combinations (CY/CY, CY/CFS, CFS/CY, CFS/CFS)

Ocean carriers offer four primary service combinations depending on whether cargo is packed or unpacked at a Container Yard or a Container Freight Station.

Service CombinationOrigin LoadingDestination UnloadingFreight ModeCommercial Application
CY / CYOrigin Container Yard (CY)Destination Container Yard (CY)FCL / FCLStandard FCL shipping: one shipper packs a full container; one consignee unpacks at destination.
CY / CFSOrigin Container Yard (CY)Destination Freight Station (CFS)FCL / LCLBuyer's consolidation: one supplier packs a full container sent to a destination CFS to split among multiple buyers.
CFS / CYOrigin Freight Station (CFS)Destination Container Yard (CY)LCL / FCLVendor consolidation: multiple suppliers deliver LCL cargo to origin CFS to assemble one full container for one buyer.
CFS / CFSOrigin Freight Station (CFS)Destination Freight Station (CFS)LCL / LCLStandard LCL shipping: shared container for small volume shipments; handled entirely at CFS hubs.

Architecture

Visual Architecture: Physical & Contractual Boundaries of CY Shipping

Shipper Factory / Warehouse

1. Drayage Trucker Pulls Empty Box from Depot

Shipper Factory Stuffing

2. ISO Bolt Seal Applied & VGM Weighed · 3. Drayage to Port Gate

Origin Container Yard (CY)

Gate-In Scan (CODECO EDI generated; carrier custody begins) · Staged in Yard Blocks for Quay Crane Loading

4. Vessel Loading & Main Carriage

Destination Container Yard (CY)

Discharged from Vessel (COARRI EDI generated) · Staging Period (Carrier Free-Time Window Starts)

5. Consignee Trucker Gate-Out → Destination Consignee Door / Unstuffing

Deadlines

Critical CY Deadlines: CY Cutoff, SI Cutoff & SOLAS VGM Rules

Operating smoothly within a Container Yard requires adhering to three strict non-negotiable operational cutoffs established by the ocean carrier and terminal operator:

Shipping Instruction (SI) Cutoff

Deadline to submit complete Master Bill of Lading data, including shipper, consignee, HTS codes, and container seal numbers.

SOLAS Verified Gross Mass (VGM) Cutoff

Deadline to submit certified container weight (Method 1 scale or Method 2 calculation). Uncertified boxes ARE DENIED GATE-IN.

CY Gate-In Cutoff (CY Closing)

Absolute deadline for the physical truck to gate-in at the port. Missing CY Closing causes immediate CONTAINER ROLLING to next ship.

Logistics Warning

Gating in at the port terminal 15 minutes after the published CY Cutoff results in gate rejection or automatic container rolling to a subsequent vessel voyage, triggering roll fees ($300 to $500 USD) and extra yard storage charges.

Dwell & break-even math

CY Dwell Time Risk & FCL/LCL Break-Even Math

To manage container logistics profitably, supply chain managers rely on two fundamental mathematical models.

C_CY_Penalty = Sum[d=1 to D_excess] (R_Demurrage(d) + R_Port_Storage(d)) x N_containers
V_BreakEven (CBM) = (Rate_FCL_20ft_CY/CY + THC_Origin + THC_Dest) / (Rate_LCL_CFS_per_CBM + Handling_CFS_per_CBM)
WORKED CASE STUDY: SHANGHAI TO HAMBURG CARGO OPTIMIZATION
Merchant shipping 15 CBM of goods from Shanghai, China to Hamburg, Germany.

OPTION A: FULL 20FT CONTAINER (CY/CY FCL)
├── Base 20ft Ocean Freight Rate:        $1,150.00 USD
├── Origin THC:                           $150.00 USD
├── Destination THC:                      $200.00 USD
└── TOTAL FCL COST = $1,500.00 USD FLAT

OPTION B: LCL CONSOLIDATION (CFS/CFS)
├── LCL Freight Rate:  $85.00 / CBM
├── Origin CFS Fee:    $45.00 / CBM
├── Dest CFS Devanning:$50.00 / CBM
└── All-In LCL Rate = $180.00 / CBM

STEP 1: LCL Cost for 15 CBM = 15 x $180 = $2,700.00
STEP 2: V_BreakEven = $1,500 / $180 = 8.33 CBM
STEP 3: VERDICT ── 15 CBM > 8.33 CBM break-even
RESULT: Booking a full 20ft CY/CY container saves $1,200.00 USD
(44.4% cost reduction) and shaves 5 days off transit time!

Workflow

Step-by-Step CY Shipping Execution Workflow for Shippers

Step 1: Booking Confirmation & Equipment Pick-Up

Request CY/CY ocean booking with Super International Shipping. Drayage trucker collects clean empty container from designated depot.

Step 2: Factory Loading, Sealing & Weighing

Stuff cargo into container at factory loading dock. Apply ISO 17712 certified High-Security Bolt Seal. Weigh container on calibrated weighbridge to obtain SOLAS Method 1 VGM.

Step 3: Transmit Data & Execute Gate-In Before Cutoff

File Shipping Instructions (SI) and SOLAS VGM digitally. Drayage truck gates in at origin Container Yard (CY) prior to CY Cutoff.

Step 4: Port Transit & Destination CY Discharge

Vessel sails; carrier issues clean 'On-Board' Master Bill of Lading. Vessel arrives at destination port; container is discharged into destination CY.

Step 5: Customs Clearance & Destination Gate-Out

Import customs entry cleared through destination single-window system. Drayage trucker presents delivery order, gates out of destination CY, and delivers full container to consignee door.

FAQ

Frequently asked questions

What does CY/CY mean on a Bill of Lading?
CY/CY (Container Yard to Container Yard) indicates that the ocean carrier takes custody of a sealed Full Container Load (FCL) at the origin port's Container Yard and delivers it to the destination port's Container Yard. The shipper is responsible for stuffing at origin, and the consignee is responsible for devanning at destination.
What is the difference between CY Cutoff and Vessel ETD?
CY Cutoff (or CY Closing) is the absolute deadline by which a container must physically gate-in at the port terminal. Vessel ETD (Estimated Time of Departure) is when the ship is scheduled to unmoor and sail. CY Cutoff usually occurs 12 to 24 hours prior to Vessel ETD to allow for vessel loading plans and quay crane operations.
Who pays for terminal charges in a CY/CY shipment?
Under standard FOB or CIF Incoterms, origin Terminal Handling Charges (THC) at the origin CY are paid by the exporter, while destination Terminal Handling Charges (DTHC) at the destination CY are paid by the importer. Under DDP terms, all CY handling charges are bundled and paid by the seller/forwarder.
What happens if a container misses the CY Cutoff?
If a container arrives at the port gate after the CY Cutoff has passed, port authorities will refuse gate-in. The driver must hold the container outside the port, and the forwarder must apply to roll the booking to the next available vessel sailing, incurring roll fees and chassis detention charges.
Is CY shipping used for LCL cargo?
No. Standard CY/CY shipping is used strictly for Full Container Load (FCL) cargo. Less-than-Container Load (LCL) cargo is handled at a Container Freight Station (CFS) for consolidation and deconsolidation.

Why SIS

Optimize Your Container Logistics with Super International Shipping

Navigating CY cutoffs, ocean carrier bookings, terminal handling charges, and customs clearance demands an experienced, tech-enabled 3PL logistics partner. Super International Shipping provides complete end-to-end container transport solutions:

  • ✓Direct CY/CY FCL Contracted AllocationsPriority container space across major ocean alliances (Gemini, Ocean Alliance, Premier Alliance) connecting Asia, North America, Europe, LATAM, and Australia.
  • ✓Automated SOLAS VGM & SI SubmissionsPre-screened electronic filings ensuring zero gate-in holds at major origin container yards (Shenzhen, Ningbo, Shanghai, Qingdao).
  • ✓100% Pre-Cleared DDP LogisticsTurnkey Importer of Record (IOR) coverage handling customs clearance, Section 301 tariffs, port drayage, and door delivery.
  • ✓Off-Dock Warehousing & 3PL TransloadingDevanning, palletization, and regional distribution to Amazon FBA and commercial fulfillment centers.

About the author

Lotus Liu

Editor at Super International Shipping

Lotus Liu, Editor at Super International Shipping, writes on international shipping and supply chain strategy. Her focus includes strategic sourcing and supplier optimization, with clear, actionable guidance to help professionals streamline complex global operations.