Well, at least that is a misconception a lot of people have, one that could lead to loss of business and money many a time..
The Shipping and Freight industry is full of jargon, abbreviations, and terminologies that sound similar but have very distinct meanings and differences and it requires an intricate level of understanding to use these terms in the right place, in the right way, and at the right time..
Many people enter the import, export, shipping, freight, and trading business without proper research and understanding of these differences and get into a whole heap of trouble..
It is, therefore, imperative that these terminologies are understood clearly and used diligently. Several questions have been raised on this resource regarding such issues, and I have explained the difference between several such terminologies in various articles.
Coming back to the topic at hand, in my previous article about Container Service Types, I briefly touched upon CY and CFS.. In this article, we will look at the difference between CY and CFS in detail and the legal connotations..
What you need to know about a CY
CY = Container Yard refers to an area within the port or container terminal or dry port where FCL containers are stored either
- after it is offloaded from the ship in the case of imports or
- before it is loaded on a ship in the case of exports
In a CY/CY shipment, at the time of export, the customer will deliver the container to the designated CY at the port of load under the account of the shipping line, and from then, the container is deemed to be under the control of the shipping line till such time the container reaches the CY at the port of discharge.. The customer will pick up the full container from the CY at the port of discharge..
In the CY/CY notation, the first CY denotes the CY at the port of load where the shipping line takes responsibility for the container and the second CY denotes the CY at the port of discharge where the shipping line ends its responsibility for the container..
Depending on the contract of carriage with the customer and the port where the operation is done, some lines might suffix the port of load and/or port of discharge fields in the bill of lading with CY, for example Hamburg CY which makes it crystal clear that the contractual obligation of the shipping line begins and ends at the Container Yard of the named port..
A typical CY area will look like the marked area in below image :
What you need to know about a CFS
CFS = Container Freight Station refers to a warehouse where goods belonging to various exporters or importers are consolidated (grouped) or deconsolidated (degrouped) before being exported or after being imported respectively..
Depending on whether it is an LCL shipment or Groupage shipment, the CFS maybe operated by a shipping line or groupage operator..
Customers will deliver cargo to the nominated CFS for packing in the case of exports or pick up cargo from the nominated CFS after unpacking in the case of imports..
In the case of LCL shipments, bills of lading issued will be the lines bill of lading (no Master Bill of Lading) and will have the term CFS/CFS mentioned.. This means that the shipping line’s responsibility begins at the CFS at the port of load and ends at the CFS at the port of discharge..
In the case of Groupage shipments, the bills of lading issued will be the consolidator’s House Bill of Lading and may also mention the term CFS/CFS.. This means that the Groupage operator’s responsibility begins at the CFS at the port of load and ends at the CFS at the port of discharge..
In the case of a Groupage shipment, the shipping line’s master bill of lading to the groupage operator will be a CY/CY bill of lading..
Although I have not seen it for many years, some shipping lines that handle LCL cargoes used to issue bills carrying the notation CY/CFS or CFS/CY which means
- CY/CFS – One FCL shipper => Multiple LCL consignees
- CFS/CY – Multiple LCL shippers => One FCL consignee
If anyone knows of any lines still doing this, please do share in the comments below..
