In international ocean freight transportation, familiarity with industry terminology enables importers and exporters to better control expenses and mitigate risks. Among the essential terms, CY (Container Yard) refers to designated storage areas for shipping containers, while commonly encountered variations like CY/FO, CY/CY, and CY/LO represent distinct cost allocation models.
The CY/FO arrangement (Container Yard/Freight Out) designates the consignee as responsible for container-related expenses, meaning the receiving party bears all container charges. In contrast, CY/CY (Container Yard to Container Yard) indicates a cost-neutral scenario where neither shipper nor consignee incurs additional fees, as the carrier assumes all transportation expenses—an advantageous model for cost-conscious businesses.
Under the CY/LO (Container Yard/Loading Out) framework, the consignee must cover not standard container yard fees but also supplementary loading and unloading charges. Mastery of these contractual terms allows trading companies to optimize financial planning and enhance transactional efficiency in global commerce.
