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Container Yard

The terminal area where containers are stored before loading or after discharge.

What is Container Yard?

A container yard (CY) is the area at a port terminal, off-dock facility or inland depot where full and empty containers are received, stacked and stored before loading onto a vessel or after discharge while awaiting pickup. Unlike a container freight station, the CY handles containers as sealed units and does not open them. CY is also a service term: CY/CY on a bill of lading means the carrier's responsibility starts when the loaded container is received at the origin yard and ends when it is made available at the destination yard, the normal basis for FCL shipments. Export containers must be gated in before the carrier's CY cutoff, and under SOLAS chapter VI regulation 2, in force since 1 July 2016, a packed container may not be loaded without a verified gross mass. Import containers stay in the CY under free time, after which demurrage applies until the box gates out.

Why it matters for forwarders

Most FCL charge disputes trace back to CY events: gate-in, discharge, availability, last free day and gate-out. Forwarders should record the terminal's actual availability date, because free time is measured from it, and in US trades the FMC billing rule requires demurrage and detention invoices to state the availability date and the start and end of free time (46 CFR 541.6). A container can be physically in the yard yet unavailable because of a customs, freight or carrier hold, so confirm release status before dispatching a trucker. Whether the move is merchant haulage or carrier haulage decides who books the pickup and who bears detention after gate-out. Reconciling yard events against carrier invoices is the most effective defence against incorrectly billed charges.

CY FAQ

What is the difference between a container yard and a container terminal?

The terminal is the whole facility, including berths, cranes, gates and yard. The container yard is the stacking and storage area within it, or an equivalent off-dock or inland depot where containers are stored and interchanged.

What does CY/CY mean on a bill of lading?

It means the carrier receives the packed container at the origin container yard and delivers it at the destination container yard. Packing, unpacking and inland haulage outside the yards are not covered unless separately arranged.

What happens if a container stays too long in the container yard?

Once free time expires, demurrage accrues daily at the rate in the carrier's tariff or service contract, and terminal storage may also apply. In US trades the invoice must be issued within 30 calendar days of when charges were last incurred, or it need not be paid (46 CFR 541.7).

What is an off-dock container yard?

It is a yard outside the marine terminal where containers are stored, staged or interchanged, often to relieve terminal congestion. It performs the same functions as an on-terminal CY, but moving boxes there adds a drayage leg and possible extra charges.

Sources

  1. Understanding CFS and CY logistics in freight shipping, A.P. Moller - Maersk
  2. SOLAS: Verified Gross Mass, World Shipping Council
  3. 46 CFR 541.6: Contents of invoice, Legal Information Institute, Cornell Law School

Rules and figures change. Check the current text with the issuing body before relying on it.

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