Shipping Terms Explained: What Do CY/FO, CY/CY, and CY/LO Mean?

Release time:

2025-08-21

In international trade and ocean freight logistics, you may often encounter terms like CY/FO, CY/CY, and CY/LO. These are common shipping terms used in Full Container Load (FCL) transport to clarify the division of responsibilities, costs, and risks between the shipper (seller), consignee (buyer), and the carrier (shipping line).

Understanding these terms is essential for exporters, importers, and cross-border e-commerce businesses to avoid hidden costs and disputes.

Key Concepts: CY & DOOR

CY (Container Yard): A designated area at or near the port where containers are received, stored, and handed over.

DOOR: Refers to the seller’s or buyer’s factory/warehouse door.

These terms define the handover points in the shipping chain.

1. CY/CY (Container Yard to Container Yard)

This is the most common and standard term in FCL shipping.

Origin CY: The shipper delivers the full, sealed container to the container yard at the port of departure. Once it enters the CY gate, the shipper’s responsibility ends.

Destination CY: The carrier transports the container to the CY at the port of arrival. Responsibility ends when the container is handed over to the consignee at the CY. The consignee then arranges drayage to their warehouse, unloads, and returns the empty container.

👉 In short: The shipper is responsible until the origin CY, the carrier handles port-to-port transport, and the consignee takes over from the destination CY.

2. CY/FO (Container Yard to Free Out)

This term specifies who pays for unloading at the destination port.

CY: Same as CY/CY — the shipper delivers to the origin CY.

FO (Free Out): The carrier does not cover the unloading cost at the destination port (from ship to terminal). This cost must be paid by the consignee.

⚠️ Why does this exist? In some ports (e.g., certain African or South American ports), unloading is controlled by local port authorities or unions. Shipping lines cannot intervene, so they exclude this cost from the freight.

👉 In short: Same as CY/CY, but unloading at the destination port is paid by the consignee.

3. CY/LO (Container Yard to Line Out)

LO (Line Out): In practice, this means the same as FO.

Different carriers may use FO or LO, but both indicate that the consignee is responsible for unloading costs at the destination port.

👉 In short: CY/FO = CY/LO.

Tips for Exporters & Importers

✅ For Exporters (Shippers):
Use CY/CY whenever possible (FOB, CFR, CIF). It keeps responsibilities clear and costs predictable. If a buyer insists on CY/FO or CY/LO, make sure you know the destination port unloading fees and include them in your quotation.

✅ For Importers (Consignees):
If your supplier or forwarder quotes CY/FO or CY/LO, remember you’ll need to pay unloading fees at the destination port (THC or similar charges) in addition to ocean freight. Factor this into your total cost.